Problem

In 2009, CSX Corporation, which operates under the name Surface Transportation, reported o...

In 2009, CSX Corporation, which operates under the name Surface Transportation, reported operating expenses of $6,756 million. A partial list of the company’s operating expenses follows. CSX Corporation reported revenues from external customers to be $9,041 million for the year. These revenues are divided among two operations: intermodal and rail.

Revenue from External Customers

 

(Dollars in millions)

 

Intermodal

$1,204

Rail

7,837

Operating Expenses

 

(Dollars in millions)

 

Labor and Fringe Benefits

$2,629

Materials, Supplies, and Other

1,715

Inland Transportation

264

Depreciation

908

Fuel

849

Equipment and Other Rents

391

Analyze:

1. If the given categories represent the related general ledger accounts, what journal entry would be made to close the expense accounts at year-end?


2. What journal entry would be made to close the revenue accounts?


Analyze Online: Locate the Web site for CSX Corporation (www.csx.com). Click on CSX Corporation and then click on Investor Relations. Within the Financial Information link, find the most recent annual report.

3. On the consolidated statement of earnings, what was the amount reported for operating expenses?


4. What percentage increase or decrease does this figure represent from the operating expenses reported in 2009 of $6,756 million?

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