Summarize the journal entry effects usingT-accounts. Use the June 30,2019 , ending balances as the beginning balances for the July-September 2019 quarter

  

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Edward Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Edward 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 $ 112 14 108 23 295 144 155 2 25 325 24 55 Assume that the following events occurred in the following quarter. a. Paid $35 cash for additional inventory. b. Issued additional shares of common stock for $25 in cash. c. Purchased equipment for $130: paid $60 in cash and signed a note to pay the remaining $70 in two years. d. Signed a short-term note to borrow $11 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $30. Edward Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Edward 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 $ 112 14 108 23 295 144 155 2 25 325 24 55 Assume that the following events occurred in the following quarter. a. Paid $35 cash for additional inventory. b. Issued additional shares of common stock for $25 in cash. c. Purchased equipment for $130: paid $60 in cash and signed a note to pay the remaining $70 in two years. d. Signed a short-term note to borrow $11 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $30.

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The journal entries for the events that occurred in the JulySeptember 2019 quarter are a Purchased i... View the full answer