Question

Ethan Allen Interiors Inc. is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Ethan Allen's September 30, 2013, trial balance. (The amounts shown represent millions of dollars.) Accounts Payable Accounts Receivable Cash Common Stock Equipment Inventories $121 13 106 21 290 142 150 Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent Retained Earnings Salaries and Wages Payable Short-term Investments Software 23 321 23 13 50 Assume that the following events occurred in the following quarter. a. Paid $30 cash for additional inventory. b. Issued additional shares of common stock for $20 in cash. c. Purchased equipment for $170: paid $80 in cash and signed a note to pay the remaining $90 in two years d. Signed a short-term note to borrow $10 cash. e. Conducted negotiations to purchase a sawmill, which is expected to cost $36. (Enter your answers in millions but not in dollars) RequirementeneralGeneal Trial Balance Balance Sheet Analysis Current Ratico oumaLedger Trial Balance Bala Prepare the journal entries for transactions (a)-(e). If no entry is required for a transaction/event, select "No journal entry re the first account field. View transaction list Journal entry worksheet Paid s20 cash for additional inventories. Record the transaction.

Answer 1

Based on the assumption that additional inventories had already been purchased for credit and the payment for it is made now...

Journal entry :

Accounts Payable 30

To Cash. 30

(To record the payment made for additional inventory purchased earlier)

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