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Alex's Interiors, Inc., is an international manufacturer and retailer of home furnishings. The following is from Alex's balance sheet as of September 30, 2020
Alex's Interiors, Inc., is an international manufacturer and retailer of home furnishings. The following is from Alex's balance sheet as of September 30, 2020 (dollars are in millions). Cash Accounts Receivable Inventories Other Current Assets Property, Plant, and Equipment Other Assets $92.00 Accounts Payable $32.00 18.00 Wages and Other Expenses Payable 129.00 206.00 32.00 Notes Payable, (long-term) 221.00 379.00 111.00 Other Long-Term Liabilities Contributed Capital Retained Earnings 50.00 380.00 26.00 Assume that the following events occurred in the quarter ended December 31 (amounts provided are in whole dollars): a Paid $5,000,000 cash for an additional other asset b. Issued additional shares for $5,000,000 in cash. c Purchased property, plant, and equipment: paid $5,000,000 in cash and signed a note to pay the remaining $15,000,000 in two years d Sold, at cost, other assets for $1,300,000 cash. e Conducted negotiations to purchase a sawmill, which is expected to cost $42.000.000. Required: 1. Analyze transactions (a) through (e) to determine their effects on the accounting equation (Enter any decreases to account balances with a minus sign. Enter your answers in millions, rounded to two decimal places.) Next
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