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.] 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 $71 Accounts Receivable 23 Cash Common Stock Equipment Inventory Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent 18 Retained Earnings 361 Salaries and Wages Payable Software 33 40 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 $30 in cash. c. Purchased equipment for $220; paid $105 in cash and signed a note to pay the remaining $115 in two years. d. Signed a short-term note to borrow $14 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $48. 126 41 340 162 200 3 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 (i.e., 10,000,000 should be entered as 10).) Assets Liabilities Stockholders Equity Common Stock Cash Inventory Equipment Notes Payable. (short-term) Notes Payable (long-term) PAPOP b. W * 3. Record the transaction effects determined in part 2 using journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) 17 View transaction list Journal entry worksheet ook 1 2 3 4 5 Paid $35 cash for additional inventory. Record the transaction.. int Note: Enter debits before credits. Transaction General Journal Debit Clear entry Record entry Credit View general Journal