FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Required information
[The following information applies to the questions displayed below]
Southern Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and
abroad. The following is adapted from Southern 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
Assume that the following events occurred in the following quarter
a. Paid $50 cash for additional inventory.
b. Issued additional shares of common stock for $40 in cash
c. Purchased equipment for $160; paid $75 in cash and signed a note to pay the remaining $85 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 $36
View transaction list
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 (Le, 10,000,000 should be entered as 101.)
Journal entry worksheet
Note: Enter debts before credits
Transaction
5
Paid $50 cash for additional Inventory. Record the transaction
Racord antry
$ 128
17
114
29
310
150
170
1
31
337
27
70
General Journal
Clear entry
Debil
Credit
View general journal
>
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Transcribed Image Text:Required information [The following information applies to the questions displayed below] Southern Allen Interiors Incorporated is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Southern 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 Assume that the following events occurred in the following quarter a. Paid $50 cash for additional inventory. b. Issued additional shares of common stock for $40 in cash c. Purchased equipment for $160; paid $75 in cash and signed a note to pay the remaining $85 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 $36 View transaction list 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 (Le, 10,000,000 should be entered as 101.) Journal entry worksheet Note: Enter debts before credits Transaction 5 Paid $50 cash for additional Inventory. Record the transaction Racord antry $ 128 17 114 29 310 150 170 1 31 337 27 70 General Journal Clear entry Debil Credit View general journal >
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