PA2-3 Recording Transactions (in o Journal and T-Accounts); Preparing and Interpreting the Balance Sheet (LO 2-2, LO 2-3, LO 2-4, LO 2-5) (General Ledger) 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, 2019. 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 Retained Earnings Salaries and Wages Payable Software $140 20 120 35 325 156 185 4 37 349 30 85 Assume that the following events occurred in the following quarter Assume that the following events occurred in the following quarter a Paid $20 cash for additional inventory b. Issued additional shares of common stock for $15 in cash. c Purchased equipment for $190, paid $90 in cash and signed a note to pay the remaining $100 in two years d. Signed a short-term note to borrow $11 cash e Conducted negotiations to purchase a sawmill, which is expected to cost $42. Requirement General General Journal Ledger Trial Balance Balance Sheet Analysis Current Ratio General Journal tab - Prepare the journal entries to record the transactions (a) through (e). Review the accounts as shown in the General Ledger and Trial Balance tabs General Ledger tab. Each Journal entry is posted automatically to the general ledger Trial Balance tab - The ending balance values from the General Ledger tab flows through to the Trial Balance tab. Balance Sheet tab - Prepare a classified balance sheet at December 31, 2019 Analysis tab - Using the information from the requirements above, complete the 'Analysis tab Impact on Current Ratio tab - Calculate the Current Ratio and analyze the impact of the current ratio General Journal Journal entry worksheet Purchased equipment for $190; paid $90 in cash and signed a note to pay the remaining $100 in two years. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 5 Signed a short-term note to borrow $11 cash. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general joumal Prev 1 of 1 !!! Next Journal entry worksheet 1 2 3 4 Conducted negotiations to purchase a sawmill, which is expected to cost $42. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Balance Sheet Analysis Current Ratio Use the dropdowns to select the accounts properly included on the balance sheet. EDWARD ALLEN INTERIORS, INC. Balance Sheet At December 31, 2019 $ 0 0 0 0 0 S 0 Prev . 1 of 1 HII Next