2. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign.) PPPPP e. Cash Assets Inventory Equipment Liabilities Notes Payable (short-term) Notes Payable (long-term) Stockholders' Equity Common Stock
2. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign.) PPPPP e. Cash Assets Inventory Equipment Liabilities Notes Payable (short-term) Notes Payable (long-term) Stockholders' Equity Common Stock
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give image format
![Required information
[The following information applies to the questions displayed below.]
Ethan Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and
abroad. The following is adapted from Ethan 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
$ 93
14
21
363
245
162
23
9
19
1
21
49
Assume that the following events occurred in the following quarter.
a. Paid $10 cash for additional inventory.
b. Issued additional shares of common stock for $20 in cash.
c. Purchased equipment for $170; paid $15 in cash and signed a note to pay the remaining $155 in two years.
d. Signed a short-term note to borrow $10 cash.
e. Conducted negotiations to purchase a sawmill, which is expected to cost $36.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fcb2168-4edc-441d-8d35-bd7abdfcf6e5%2F99f66102-06b8-4731-9eba-d5d123009c1b%2Fb2yscu6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Ethan Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and
abroad. The following is adapted from Ethan 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
$ 93
14
21
363
245
162
23
9
19
1
21
49
Assume that the following events occurred in the following quarter.
a. Paid $10 cash for additional inventory.
b. Issued additional shares of common stock for $20 in cash.
c. Purchased equipment for $170; paid $15 in cash and signed a note to pay the remaining $155 in two years.
d. Signed a short-term note to borrow $10 cash.
e. Conducted negotiations to purchase a sawmill, which is expected to cost $36.
Transcribed Image Text:2. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with
a minus sign.)
PPPPP
Cash
Assets
Inventory
Equipment
Liabilities
Notes Payable
(short-term)
Notes Payable
(long-term)
Stockholders'
Equity
Common
Stock
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