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O Required information PA2-3 Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet (LO 2-2, LO 2-3, LO 2-4, LO 2-5)

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O Required information PA2-3 Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet (LO 2-2, LO 2-3, LO 2-4, LO 2-5) [The following information applies to the questions displayed below.) 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 Allen's September 30, 2016, trial balance. (The amounts shown represent millions of dollars.) Accounts Payable Accounts Receivable Cash Common Stock Equipment Inventory Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent Betained Earnings Salaries and Wages Payable Software $ 132 30 140 30 375 176 235 2 32 389 40 75 Assume that the following events occurred in the following quarter. a. Paid $35 cash for additional inventory b. Issued additional shares of common stock for $15 in cash. c. Purchased equipment for $210; paid $100 in cash and signed a note to pay the remaining $110 in two years. d. Signed a short-term note to borrow $15 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $38. Required information 4. Summarize the journal entry effects from part 3 using T-accounts. Use the September 30, 2016, ending balances as the beginn balances for the October-December 2016 quarter. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 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 c. End. Bal End. Bal Accounts Payable Salaries and Wages Payable Beg. Bal. Beg Bal 9 Preu !! Newt Required information c. 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

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