Southern Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United...

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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 $ 128 17 114 29 310 150 170 1 31 337 27 70 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 $40 in cash. c. Purchased equipment for $160, paid $75 in cash and signed a note to pay the remaining $85 in two years. d. Signed a short-term note to borrow $14 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $36. 2. 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).) 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 $ 128 17 114 29 310 150 170 1 31 337 27 70 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 $40 in cash. c. Purchased equipment for $160, paid $75 in cash and signed a note to pay the remaining $85 in two years. d. Signed a short-term note to borrow $14 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $36. 2. 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).)

Answer rating: 100% (QA)

2 Journal Entries Transaction General Journal Debit Credit a Inventory 40 Cash 40 To record cash pur... View the full answer