Alex's Interiors, Inc., is an international manufacturer and retailer of home furnishings. The following is from Alex's balance sheet as of September 30, 2020 (dollars are in millions). Cash Accounts Receivable Inventories Other Current Assets Property, Plant, and Equipment Other Assets Transaction a. Assume that the following events occurred in the quarter ended December 31 (amounts provided are in whole dollars): a. Paid $3,000,000 cash for an additional other asset. b. Issued additional shares for $3,000,000 in cash. c. Purchased property, plant, and equipment; paid $3,000,000 in cash and signed a note to pay the remaining $11,000,000 in two years. d. Sold, at cost, other assets for $1,100,000 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $38,000,000. b. Required: 1. Analyze transactions (a) through (e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign. Enter your answers in millions, rounded to two decimal places.) C. d. $ 84.00 14.00 194.00 28.00 363.00 103.00 e. Accounts Payable. Wages and Other Expenses Payable. Notes Payable, (long-term) Other Long-Term Liabilities. Assets Contributed Capital Retained Earnings $28.00 117.00 209.00 46.00 364.00 22.00 Liabilities Shareholders' Equity
Alex's Interiors, Inc., is an international manufacturer and retailer of home furnishings. The following is from Alex's balance sheet as of September 30, 2020 (dollars are in millions). Cash Accounts Receivable Inventories Other Current Assets Property, Plant, and Equipment Other Assets Transaction a. Assume that the following events occurred in the quarter ended December 31 (amounts provided are in whole dollars): a. Paid $3,000,000 cash for an additional other asset. b. Issued additional shares for $3,000,000 in cash. c. Purchased property, plant, and equipment; paid $3,000,000 in cash and signed a note to pay the remaining $11,000,000 in two years. d. Sold, at cost, other assets for $1,100,000 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $38,000,000. b. Required: 1. Analyze transactions (a) through (e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign. Enter your answers in millions, rounded to two decimal places.) C. d. $ 84.00 14.00 194.00 28.00 363.00 103.00 e. Accounts Payable. Wages and Other Expenses Payable. Notes Payable, (long-term) Other Long-Term Liabilities. Assets Contributed Capital Retained Earnings $28.00 117.00 209.00 46.00 364.00 22.00 Liabilities Shareholders' Equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alpesh
Transcribed Image Text:Alex's Interiors, Inc., is an international manufacturer and retailer of home furnishings. The following is from Alex's balance sheet as of
September 30, 2020 (dollars are in millions).
Cash
Accounts Receivable
Inventories
Other Current Assets
Property, Plant, and Equipment
Other Assets
Transaction
a.
Assume that the following events occurred in the quarter ended December 31 (amounts provided are in whole dollars):
a. Paid $3,000,000 cash for an additional other asset.
b. Issued additional shares for $3,000,000 in cash.
c. Purchased property, plant, and equipment; paid $3,000,000 in cash and signed a note to pay the remaining $11,000,000 in two
years.
d. Sold, at cost, other assets for $1,100,000 cash.
e. Conducted negotiations to purchase a sawmill, which is expected to cost $38,000,000.
b.
C.
Required:
1. Analyze transactions (a) through (e) to determine their effects on the accounting equation. (Enter any decreases to account
balances with a minus sign. Enter your answers in millions, rounded to two decimal places.)
d.
$84.00
14.00
194.00
28.00
363.00
103.00
e.
Accounts Payable
Wages and Other Expenses Payable
Notes Payable, (long-term)
Other Long-Term Liabilities
Assets
Contributed Capital
Retained Earnings
$28.00
117.00
209.00
46.00
364.00
22.00
Liabilities
+
Shareholders' Equity
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