2. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account bala a minus sign. Enter your answers in millions (l.e., 10,000,000 should be entered as 10).) Assets Liabilities + Stockholders' Equity Inventory Equipment Notes Payable (short-term) Notes Payable (long-term) Common Stock C (45) = W + + ++ + 35
2. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account bala a minus sign. Enter your answers in millions (l.e., 10,000,000 should be entered as 10).) Assets Liabilities + Stockholders' Equity Inventory Equipment Notes Payable (short-term) Notes Payable (long-term) Common Stock C (45) = W + + ++ + 35
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Required Information
PA2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the
Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5]
[The following information applies to the questions displayed below.]
Barnett Allen Interiors Incorporated is a leading manufacturer and retaller of home furnishings in the United States and
abroad. The following is adapted from Barnett Allen's June 30, 2019, trial balance. (The amounts shown represent millions
of dollars.)
Accounts Payable
$ 120
Accounts Receivable
16.
Cash
112
Common Stock
27
Equipment
305
Inventory
148
Notes Payable (long-term)
165
Notes Payable (short-term)
Prepaid Rent
4
29
333
Retained Earnings
26
Salaries, and Wages Payable
Software
65
Assume that the following events occurred in the following quarter.
a. Pald $45 cash for additional Inventory.
b. Issued additional shares of common stock for $35 In cash.
c. Purchased equipment for $150; paid $70 in cash and signed a note to pay the remaining $80 In two years.
d. Signed a short-term note to borrow $13 cash.
e. Conducted negotiations to purchase a sawmill, which is expected to cost $34.
PA2-3 (Algo) Part 2
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 (l.e., 10,000,000 should be entered as 10).)
Assets
Liabilities
+
Stockholders'
Equity
Common
Stock
Cash
Inventory Equipment =
Notes Payable Notes Payable
(short-term)
(long-term)
=
a.
b.
C.
d
e.
(45)
+
+
+
35
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9abd931e-a327-4ec6-a985-049e145416b1%2Fbba46794-92e3-4714-83a5-3538fd584dc3%2F7qjwfau_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
PA2-3 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the
Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5]
[The following information applies to the questions displayed below.]
Barnett Allen Interiors Incorporated is a leading manufacturer and retaller of home furnishings in the United States and
abroad. The following is adapted from Barnett Allen's June 30, 2019, trial balance. (The amounts shown represent millions
of dollars.)
Accounts Payable
$ 120
Accounts Receivable
16.
Cash
112
Common Stock
27
Equipment
305
Inventory
148
Notes Payable (long-term)
165
Notes Payable (short-term)
Prepaid Rent
4
29
333
Retained Earnings
26
Salaries, and Wages Payable
Software
65
Assume that the following events occurred in the following quarter.
a. Pald $45 cash for additional Inventory.
b. Issued additional shares of common stock for $35 In cash.
c. Purchased equipment for $150; paid $70 in cash and signed a note to pay the remaining $80 In two years.
d. Signed a short-term note to borrow $13 cash.
e. Conducted negotiations to purchase a sawmill, which is expected to cost $34.
PA2-3 (Algo) Part 2
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 (l.e., 10,000,000 should be entered as 10).)
Assets
Liabilities
+
Stockholders'
Equity
Common
Stock
Cash
Inventory Equipment =
Notes Payable Notes Payable
(short-term)
(long-term)
=
a.
b.
C.
d
e.
(45)
+
+
+
35
Next >
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