Ethan Allen Interiors is a leading manufacturer and retailer of home furnishings with 315 retail stores in the United States and abroad. The following is adapted from Ethan Allen's June 30, 2007, balance sheet (year-end). Dollars are in thousands.

Assume that the following events occurred in the next quarter ended September 30, 2007:
(a) Paid $1,400 cash for new intangibles and other assets.
(b) Received $1,050 in cash as an additional investment from owners.
(c) Purchased property, plant, and equipment; paid $1,870 in cash and signed a note payable to
repay the remaining $9,300 in two years.
(d) Sold, at cost, intangibles and other assets for $320 cash.
(e) Conducted negotiations to purchase a sawmill that is expected to cost $36,000.
Required:
1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. Use the format shown in the demonstration case on page 71.
2. Record the transaction effects determined in requirement 1 using a journal entry format.
3. Summarize the journal entry effects from requirement 2 using T-accounts. Use the balances reported in the preceding list as the beginning balances for the quarter ended September 30, 2007.
4. Explain your response to event (e).
5. Prepare a classified balance sheet at September 30, 2007.
6. As of September 30, 2007, has the financing for Ethan Allen's assets primarily come from liabilities or owners' equity?

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147,879 Accounts Payaible 26,650 34550Wages and Other Experses Payable 120,789 245,517 409,642 Other Cument Assats Property, Plant, and Equipment 322,185 Long-Tanm Liabilities Intangibles and Other Assets 97,984 Ownens' Capital