Reference no: EM132786764

Edward Allen Interiors Inc. is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Edward Allen's September 30, 2016, trial balance. (The amounts shown represent millions of dollars.)

Accounts Payable$116

Accounts Receivable 15

Cash 110

Common Stock 25

Equipment 300

Inventory 146

Notes Payable (long-term) 160

Notes Payable (short-term) 3

Prepaid Rent 27

Retained Earnings 329

Salaries and Wages Payable 25

Software 60

Assume that the following events occurred in the following quarter.

1. Paid $40 cash for additional inventory.
2. Issued additional shares of common stock for $30 in cash.
3. Purchased equipment for $140; paid $65 in cash and signed a note to pay the remaining $75 in two years.
4. Signed a short-term note to borrow $12 cash.
5. Conducted negotiations to purchase a sawmill, which is expected to cost $32.

Problem 1: 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).)