Question

Please point out all the correct answers with similar style.

3.00 points Elhan Allen Interiors Inc. is a leading manufecturer and relailer of home fumishings in the United Slales and abroad. The fallowing is adapnd from Ethan Alen's Saptamber 30, 2013, trial alance. Tha amounts shown represent millions of dollars.) Accounts Payable Accounts Receivable $121 13 108 Common Stock Equipment 142 150 Notes Payable (long-term) Ncles Payatle (short-terin) Prepaid Rent Retained Eamings Salaries and Wages Payable Short-term Investments 23 13 Assurne that the falowing overts occurred in the: falkowing quarter. a. Paid $3D cash for additional inventory. b. Issued additional shares of common stock for $20 in cash. c. Purchased equipment for S170; pald S80 in cash and signed a note to pay the remaining $90 In two d. e. years. Sigred a short-term note to bornow $10 cash. Conducted negotietions to purchase a sawmill, which is expected to cost 536. Enter your answers in millions but not in dollars) RequirementGeneral Trial Balance Balarce Sheet Analysis Current Ratio uraGeneral General Journal tab - Prepare the journal entries ta record the transactions (a) through (e. Reiew the accounts as shown in the General Ledger and Trial Balance tabs. General Ledger tab Each journal entry is pasted automatically ta the general ledger. Trial Balance tab-Th숀 ending balance values from the General Ledger tab flows through to the Trial Balance tab. Balance Sheet tab Prepare a dassified balance sheet at December 31, 2013. Analysis tab Using the infarmation from the requirements above, complete the Analysis' tab Impact on Current Ratio tab-Calculate th숀 Current Ratio and·analyze the impact of the current ratio. Requirement General Journal>

Answer 1

Ans-1-Journal Entries

Date	Account Titles	Debit	Credit
a.	Inventory A/c Dr.	30
	Cash A/c		30
	(To record paid $30 for additional inventory)
b.	Cash A/c Dr.	20
	Common Stock A/c
	(To record issued additional shares of common stock)
c.	Equipment A/c Dr.	170
	Cash A/c		80
	Notes Payable (Long-Term)		90
	(To record the purchase of equipment )
d.	No Journal Entry
	(No financial transaction has done only agreement has signed)
e.	No Journal Entry
	(No financial transaction has done only negotiation has completed)

Ans-General Ledger

	Cash
Beg.Bal.	106	30	a
b	20	80	c
End Bal.	16
	Notes Payable (Long-Term)
		150	Beg. Bal.
		90	c
		240	End. Bal.
	Equipment
Beg. Bal.	290
c	170
End Bal.	460
	Common Stock
		21	Beg. Bal.
		20	b
		41	End Bal.
	Inventory
Beg. Bal.	142
a	30
End Bal.	172

Trial Balance

	Debit	Credit
Accounts Payable		$121
Accounts Receivable	13
Cash	16
Common Stock		41
Equipment	460
Inventories	172
Notes Payable (Long-Term)		240
Notes Payable (Short-Term)		1
Prepaid Rent	23
Retained Earnings		321
Salaries and Wages Payable		23
Short-Term Investments	13
Software	50
Totals	$747	$747

Balance Sheet

Assets		Liabilities
Current Assets:		Current Liabilities:
Accounts Receivable	13	Accounts Payable	121
Cash	16	Notes Payable (Short-Term)	1
Short -Term Investments	13	Salaries and Wages Payable	23
Inventory	172
Prepaid Rent	23
Total Current Assets	237	Total Current Liabilities	145
Fixed Assets:		Non-Current Liabilities:
Equipment	460	Notes Payable (Long-Term)	240
Software	50
Total Fixed Assets	510	Total Non-Current Liabilities	240
		Stockholders' equity:
		Common Stock	41
		Retained Earnings	321
		Total Stockholders' Equity	362
Total Assets	$747	Total Liabilities and Stockholders' Equity	$747

Current Ratio= Current Assets/ Current Liabilities

=$237/$145

=1.63

The current ratio of the company shows that every liability of $1 the company has $1.63 current assets to paid. This shows that the company has the sufficient current assets to pay its current liabilities.

Kindly give thumbsup if u like my answer...Thanks!!!