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Required Information [The following Information applies to the questions displayed below.) Edward Allen Interiors Inc. is a leading manufacturer and retailer of home furnishings in

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Required Information [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 Retained Earnings Salaries and Wages Payable Software $ 152 22 124 39 335 160 195 2 41 357 32 95 Assume that the following events occurred in the following quarter. a. Pald $30 cash for additional Inventory b. Issued additional shares of common stock for $25 in cash. cPurchased 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 $13 cash. e Conducted negotiations to purchase a sawmill, which is expected to cost $46 Required information 4. Summarize the journal entry effects from part 3 using T-accounts. Use the September 30, 2016, ending balances as the beginning balances for the October-December 2016 quarter (Enter your answers in millions (1.e. 10,000,000 should be entered as 10).) Cash Accounts Receivable Beg Bal. 124 Beg. Bal 22 b 25 13 a. End. Bal 162 End. Bal 22 Inventory 160 30 Prepaid Rent 41 Beg Bal Beg Bal a End. Bal 190 End. Bal. 41 Equipment 335 Software 95 Beg. Bal. Beg Bal C 95 End. Bal 335 End. Bal Accounts Payable Salaries and Wages Payable 32 Beg Bal Beg Bal End Bal End Bal Software Equipment 335 Beg. Bal Beg Bal 95 C. End, Bal 335 95 End. Bal Accounts Payable Salaries and Wages Payable 32 Beg. Bal. Beg. Bal 32 End. Bal End. Bal Notes Payable (short-term) Notes Payable (long-term) 195 Beg Bal. Beg Bal c. 110 End. Bal 305 End. Bal. Common Stock Retained Earnings 357 39 Beg. Bal. Beg. Bal. End Bal 357 39 End Bal

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