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. 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 $ 116 15 110 25 300 146 160 3 27 329 25 60 Assume that the following events occurred in the following quarter. a. Paid $40 cash for additional inventory. b. Issued additional shares of common stock for $30 in cash. c. Purchased equipment for $140; paid $65 in cash and signed a note to pay the remaining $75 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 $32. Required: 1-a. Calculate Edward Allen's current ratio at September 30, 2016, prior to the transactions listed above. (Round your answer to 2 decimal places.) Current Ratio 1-b. Based on the above calculation and analysis of TripAdvisor's current ratio 4.73, indicate which company is in a better position to pay liabilities Edward Allen TripAdvisor 2. Analyze transactions (a)-e) to determine their effects on the accounting equation (Enter any decreases to account balances with a minus sign.) Assets Liabilities a. Stockholders' Equity b c d 3. Record the transaction effects determined in part 2 using journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) ook -onces View transaction list Journal entry worksheet 1 2 3 4 5 > Paid $40 cash cash for additional inventory. Record the transaction. Note: Enter debits before credits Transaction General Journal Debit Credit a Record entry Clear entry View general journal 3. Record the transaction effects determined in part 2 using journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet