Required information. PA2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5] [The following information applies to the questions displayed below.] Southern Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Southern Allen's June 30, 2019, trial balance. (The amounts shown represent millions of dollars.) Accounts Payable Accounts Receivable Cash Common Stock Equipment Inventory Notes Payable (long-tere)) Notes Payable (short-tern) Prepaid Rent Retained Earnings Salaries and Wages Payable Software $ 147 33 146 36 390 182 250 2 38 401 43 90 Assume that the following events occurred in the following quarter. a. Paid $50 cash for additional inventory. b. Issued additional shares of common stock for $30 in cash c. Purchased equipment for $240: paid $115 in cash and signed a note to pay the remaining $125 in two years. d. Signed a short term note to borrow $12 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $44. PA2-3 (Algo) Part 1 Required: 1-a. Calculate Southern Allen's current ratio at June 30, 2019, prior to the transactions listed above. (Round your answer to 2 decimal places.) Current Rado 159 1-b. Based on the above calculation and analysis of Noodlecake's current ratio 4.73, Indicate which company is in a better position to pay liabilities as they come due in the next year. O Southern Allen O Noodlecake Required information PA2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5] [The following information applies to the questions displayed below.] Southern Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Southern Allen's June 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-tere) Prepaid Rent Retained Earnings Salaries and Wages Payable Software $147 33 146 36 390 182 250 2 38 401 43 90 Assume that the following events occurred in the following quarter. a. Paid $50 cash for additional Inventory. b. Issued additional shares of common stock for $30 in cash. c. Purchased equipment for $240, paid $115 in cash and signed a note to pay the remaining $125 in two years. d. Signed a short-term note to borrow $12 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $44. PA2-3 (Algo) Part 1 Required: 1-6. Calculate Southern Allen's current ratio at June 30, 2019, prior to the transactions listed above. (Round your answer to 2 decimal places.) Current Rabo 1.59 1-b. Based on the above calculation and analysis of Noodlecake's current ratio 4.73, indicate which company is in a better position to pay liabilities as they come due in the next year. O Southern Allen O Noodlecake Pan 27 12.5 pon Required information PA2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5] (The following information applies to the questions displayed below) Southern Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Southern Allen's June 30, 2013, trial balance (The amounts shown represent millions of dollars) Accounts Payable 5147 Actunts Receivable Cash 146 Com Mack 350 Inventory P Notes Payable (lang-tere) 250 Notes Payable (short) 2 Salaries and Mages Pyshe AV Assume that the following events occurred in the following quarter a Paid $50 cash for additional Inventory bissued additional shares of common stock for $30 in cash c Purchased equipment for $240, paid $115 in cash and signed a note to pay the remaining $125 in two years d Signed a short-term note to borrow $12 cash e Conducted negotiations to purchase a sawmill, which is expected to cost $44 PA2-3 (Algo) Part 2 2. Analyze transaction (a) (e) to determine their effects on the accounting equation (Enter any decreases to account balances with minus sign. Enter your answers in millions (ie. 10,000,000 should be entered as 101) b Astels Equity ventory Equipment Notes Payable Notes Payable (short-term) (long term Common Mick [The following information applies to the questions displayed below! Southern Allen Interiors Incorporated is a leading manufacturer and retailer of home fumishings in the United States and abroad. The following is adapted from Southern Allen's June 30, 2019, trial balance (The amounts shown represent millions of dollars) Accounts Payable Accounts Feceivable. Cash Common Stock Inventory Notes Payable (long-term) Notes Payable (short-tere) Prepaid an Retained Earnings Salaries and Mages Payable Software $ 147 133 146 36 390 182 250 38 401 43 90 Assume that the following events occurred in the following quarter a Paid $50 cash for additional inventory b. Issued additional shores of common stock for $30 in cash c. Purchased equipment for $240, paid $115 in cash and signed a note to pay the remaining $125 in two years. d. Signed a short term note to borrow $12 cash, e. Conducted negotiations to purchase a sawmill, which is expected to cost $44. PA2-3 (Algo) Part 3 3. Record the transaction effects determined in part 2 using journal entries. Of no entry is required for a transection/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions (ie, 10,000,000 should be entered as 10)) Journal entry worksheet < 1 2 3 5 Paid $50 cash for additional inventory Record the transaction Note Enter debits before creats. Transaction General Journal Debit Credit Record entry Clear entry View general journal 4. Summarize the journal entry effects from part 3 using T-accounts. Use the June 30, 2019, ending balances as the beginning balances for the July-September 2019 quarter. (Enter your answers in millions (ie., 10,000,000 should be entered as 10)) Cash Accounts Receivable Debit Credit Debit Credit Begrving Begining Balance Ending Balance Ending Balance ventory Prepaid Rant Debit Cret Debit Credit Begnning Dalance Beginning Balance Ending Balance Ending Balance Equipment Software Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Accounts Payable Salaries and Wages Payable Debit Credit Deb Credi Beginning Balance Beginning Balance Ending Balance Ending Balance Notes Payable (short-term Notes Payable (long-term Debit Credit Debit Credit Banning Balance Beginning Balance Ending Balance Ending Balance Common Stock Retained Eamings Debit Credit Debit Credit Beginning Balance Begrining Balance Ending Balance Ending Balance Required information PA2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5] [The following information applies to the questions displayed below.] Southern Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Southern Allen's June 30, 2019, trial balance. (The amounts shown represent millions of dollars.) Accounts Payable Accounts Receivable Cash Common Stock Equipment Inventory Notes Payable (long-term) $147 33 146 36 390 182 250 2 Notes Payable (short-term) Prepaid Rent Retained Earnings Salaries and Wages Payable Software 38 401 43 90 Assume that the following events occurred in the following quarter. a. Paid $50 cash for additional Inventory. b. Issued additional shares of common stock for $30 in cash. c. Purchased equipment for $240, paid $115 in cash and signed a note to pay the remaining $125 in two years. d Signed a short-term note to borrow $12 cash. e Conducted negotiations to purchase a sawmill, which is expected to cost $44. PA2-3 (Algo) Part 5 5. With respect to event (e), which of the following is correct? Multiple Choice It does not involve exchange of cash, goods, or services It does involve exchange of cash, goods, or services Required information PA2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet (LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5] [The following information applies to the questions displayed below.] Southern Allen Interiors Incorporated is a leading manufacturer and retaller of home furnishings in the United States and abroad. The following is adapted from Southern Allen's June 30, 2019, trial balance. (The amounts shown represent millions of dollars.) Accounts Payable Accounts Receivable Cash Common Stock Equipment Inventory Notes Payable (long-tern): Notes Payable (short-tera) Prepaid Rent Retained Earnings Salaries and Wages Payable Software $ 147 33 146 36 390 182 250 2 38 401 431 98 Assume that the following events occurred in the following quarter. a. Paid $50 cash for additional Inventory. b. Issued additional shares of common stock for $30 in cash. c. Purchased equipment for $240; paid $115 in cash and signed a note to pay the remaining $125 in two years. d. Signed a short-term note to borrow $12 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $44. PA2-3 (Algo) Part 5 5. With respect to event (e), which of the following is correct? Multiple Choice It does not involve exchange of cash, goods, or services it does involve exchange of cash goods, or services. Required information PA2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5] [The following information applies to the questions displayed below.) Southern Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Southern Allen's June 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 $ 147 33 146 36 390 182 250 2 38 401 43 90 Assume that the following events occurred in the following quarter. a. Paid $50 cash for additional inventory. b. Issued additional shares of common stock for $30 in cash c. Purchased equipment for $240; paid $115 in cash and signed a note to pay the remaining $125 in two years. d. Signed a short-term note to borrow $12 cash, e. Conducted negotiations to purchase a sawmill, which is expected to cost $44. PA2-3 (Algo) Part 7 7-8. Use your response to part 6 to calculate Southern Allen's current ratio after the transactions listed in (a)-(e) 7-b. Compare Ethan Allen's current ratio at June 30, 2019 with its current ratio after the transactions listed in (a)-(e), and indicate whether the transactions increased or decreased the company's ability to pay current liabilities. Complete this question by entering your answers in the tabs below. Req 7A Req 78 Use your response to part 6 to calculate Southern Allen's current ratio after the transactions listed in (a)-(e). (Round your answer to 2 decimal places.) Current ratio after transactions (a)-(e) Reg7A Req 78 > Required information PA2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet (LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5] [The following information applies to the questions displayed below] Southern Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Southern Allen's June 30, 2019, trial balance. (The amounts shown represent millions of dollars.) Accounts Payable Accounts Receivable Cash Common Stock Equipment $ 147 33 146 36 390 Inventory 182 Notes Payable (long-term) 250 Notes Payable (short-term) 2 Prepaid Rent 38 Retained Earnings 401 Salaries and Mages Payable 43 90 Software Assume that the following events occurred in the following quarter. a. Paid $50 cash for additional inventory. b. Issued additional shares of common stock for $30 in cash. c. Purchased equipment for $240; paid $115 in cash and signed a note to pay the remaining $125 in two years. d. Signed a short-term note to borrow $12 cash. e Conducted negotiations to purchase a sawmill, which is expected to cost $44. PA2-3 (Algo) Part 7 7-a. Use your response to part 6 to calculate Southern Allen's current ratio after the transactions listed in (a)-(e) 7-b. Compare Ethan Allen's current ratio at June 30, 2019 with its current ratio after the transactions listed in (a)-(e) and indicate whether the transactions increased or decreased the company's ability to pay current liabilities. Complete this question by entering your answers in the tabs below. Req 7A Req 70 Compare Ethan Allen's current ratio at June 30, 2019 with its current ratio after the transactions listed in (a)-(e), and indicate whether the transactions increased or decreased the company's ability to pay current liabilities Increased Decreased