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 Cash Common Stock 16 112 27 305 Equipment Inventory 148 Notes Payable (long-term) 165 4 Notes Payable (short-term) Prepaid Rent 29 Retained Earnings 333 26 Salaries and Wages Payable Software 65 Assume that the following events occurred in the following quarter. a. Paid $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.
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 Cash Common Stock 16 112 27 305 Equipment Inventory 148 Notes Payable (long-term) 165 4 Notes Payable (short-term) Prepaid Rent 29 Retained Earnings 333 26 Salaries and Wages Payable Software 65 Assume that the following events occurred in the following quarter. a. Paid $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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Answer the two parts
![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
Cash
Common Stock
16
112
27
305
Equipment
Inventory
148
Notes Payable (long-term)
165
4
Notes Payable (short-term)
Prepaid Rent
29
Retained Earnings
333
26
Salaries and Wages Payable
Software
65
Assume that the following events occurred in the following quarter.
a. Paid $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 1
Required:
1-a. Calculate Barnett Allen's current ratio at June 30, 2019, prior to the transactions listed above. (Round your answer to 2 decimal
places.)
Current Ratio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9abd931e-a327-4ec6-a985-049e145416b1%2Fdae71908-7334-4da2-b89a-1479d7a7ce1b%2Fsg7hvrb_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
Cash
Common Stock
16
112
27
305
Equipment
Inventory
148
Notes Payable (long-term)
165
4
Notes Payable (short-term)
Prepaid Rent
29
Retained Earnings
333
26
Salaries and Wages Payable
Software
65
Assume that the following events occurred in the following quarter.
a. Paid $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 1
Required:
1-a. Calculate Barnett Allen's current ratio at June 30, 2019, prior to the transactions listed above. (Round your answer to 2 decimal
places.)
Current Ratio
Transcribed Image Text:H
Required:
1-8. Calculate Barnett Allen's current ratlo at June 30, 2019, prior to the transactions listed above. (Round your answer to 2 decimal
places.)
Current Ratio
1-b. Based on the above calculation and analysis of Noodlecake's current ratio 4.73, indicate which company is in a better position to
pay liabilities as they come due in the next year.
O Barnett Allen
O Noodlecake
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