Edward Allen Interiors Inc. is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Edward Allens September 30, 2016, trial balance. (The amounts shown represent millions of dollars.)

Accounts Payable	$	116
Accounts Receivable		27
Cash		134
Common Stock		24
Equipment		360
Inventory		170
Notes Payable (long-term)		220
Notes Payable (short-term)		3
Prepaid Rent		26
Retained Earnings		377
Salaries and Wages Payable		37
Software		60

Assume that the following events occurred in the following quarter.

1. Paid $55 cash for additional inventory.
2. Issued additional shares of common stock for $20 in cash.
3. Purchased equipment for $260; paid $125 in cash and signed a note to pay the remaining $135 in two years.
4. Signed a short-term note to borrow $12 cash.
5. Conducted negotiations to purchase a sawmill, which is expected to cost $32.

Summarize the journal entry effects from part 3 using T-accounts. Use the September 30, 2016, ending balances as the beginning balances for the OctoberDecember 2016 quarter.

Cash					Accounts Receivable
Beg. Bal.					Beg. Bal.
End. Bal.					End. Bal.
Inventory					Prepaid Rent
Beg. Bal.					Beg. Bal.
End. Bal.					End. Bal.
Equipment					Software
Beg. Bal.					Beg. Bal.
End. Bal.					End. Bal.
Accounts Payable					Salaries and Wages Payable
Beg. Bal.					Beg. Bal.
End. Bal.					End. Bal.
Notes Payable (short-term)					Notes Payable (long-term)
Beg. Bal.					Beg. Bal.
End. Bal.					End. Bal.
Common Stock					Retained Earnings
Beg. Bal.					Beg. Bal.
End. Bal.					End. Bal.