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Ramos Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Ramos
Ramos Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Ramos Allens June 30, 2019, trial balance. (The amounts shown represent millions of dollars.) Accounts Payable $ 148 Accounts Receivable 21 Cash 122 Common Stock 37 Equipment 330 Inventory 158 Notes Payable (long-term) 190 Notes Payable (short-term) 1 Prepaid Rent 39 Retained Earnings 353 Salaries and Wages Payable 31 Software 90 Assume that the following events occurred in the following quarter. Paid $25 cash for additional inventory. Issued additional shares of common stock for $20 in cash. Purchased equipment for $200; paid $95 in cash and signed a note to pay the remaining $105 in two years. Signed a short-term note to borrow $12 cash. Conducted negotiations to purchase a sawmill, which is expected to cost $44. Analyze transactions (a)(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
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