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E2-5 (Algo) Determining Financial Statement Effects of Several Transactions LO2-1, 2-3 Nike, Incorporated, with headquarters in Beaverton, Oregon, is one of the world's leading manufacturers of athletic shoes and sports apparel. The following activities occurred during a recent year. The amounts are rounded to millions, except for par value. a. Purchased additional buildings for $188 and equipment for $260; paid $406 in cash and signed a long-term note for the rest. b. Issued 110 shares of $2 par value common stock for $335 cash. c. Declared $140 in dividends to be paid in the following year. d. Purchased additional short-term investments for $7,616 cash. e. Several Nike investors sold their own stock to other investors on the stock exchange for $82. f. Sold $4,113 in short-term investments for $4,113 in cash. g. Borrowed $6,184 from a bank; signed a note due in 20 years. h. Repurchased its common stock for $2,987 in cash. Required: For each of the events (a) through (h), perform transaction analysis and indicate the account and amounts. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on the accounting equation leave cells blank. Enter your answers in millions, (for example, 5.5 million should be entered as 5.5 rather than 5,500,000). Event a. a. a. b. b. C. C. d. d. e. e. f. f. g. g. h. h. Buildings Equipment Cash Cash Assets Short-term investments Cash Cash Short-term investments Liabilities 188 Notes payable (long-term) E (406) = 335 = = (4,113) = Dividends payable = 7,616 = (7,616) = = = 4,113 = = = Notes payable (long-term) = = E + 42 + + + + Common stock + 140 + Retained earnings + + + + + + + 6,184 + + Stockholders' Equity + + (140)

E2-5 (Algo) Determining Financial Statement Effects of Several Transactions LO2-1, 2-3 Nike, Incorporated, with headquarters in Beaverton, Oregon, is one of the world's leading manufacturers of athletic shoes and sports apparel. The following activities occurred during a recent year. The amounts are rounded to millions, except for par value. a. Purchased additional buildings for $188 and equipment for $260; paid $406 in cash and signed a long-term note for the rest. b. Issued 110 shares of $2 par value common stock for $335 cash. c. Declared $140 in dividends to be paid in the following year. d. Purchased additional short-term investments for $7,616 cash. e. Several Nike investors sold their own stock to other investors on the stock exchange for $82. f. Sold $4,113 in short-term investments for $4,113 in cash. g. Borrowed $6,184 from a bank; signed a note due in 20 years. h. Repurchased its common stock for $2,987 in cash. Required: For each of the events (a) through (h), perform transaction analysis and indicate the account and amounts. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on the accounting equation leave cells blank. Enter your answers in millions, (for example, 5.5 million should be entered as 5.5 rather than 5,500,000). Event a. a. a. b. b. C. C. d. d. e. e. f. f. g. g. h. h. Buildings Equipment Cash Cash Assets Short-term investments Cash Cash Short-term investments Liabilities 188 Notes payable (long-term) E (406) = 335 = = (4,113) = Dividends payable = 7,616 = (7,616) = = = 4,113 = = = Notes payable (long-term) = = E + 42 + + + + Common stock + 140 + Retained earnings + + + + + + + 6,184 + + Stockholders' Equity + + (140)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E2-5 (Algo) Determining Financial Statement Effects of Several Transactions LO2-1, 2-3 Nike, Incorporated, with headquarters in Beaverton, Oregon, is one of the world's leading manufacturers of athletic shoes and sports apparel. The following activities occurred during a recent year. The amounts are rounded to millions, except for par value. a. Purchased additional buildings for $188 and equipment for $260; paid $406 in cash and signed a long-term note for the rest. b. Issued 110 shares of $2 par value common stock for $335 cash. c. Declared $140 in dividends to be paid in the following year. d. Purchased additional short-term investments for $7,616 cash. e. Several Nike investors sold their own stock to other investors on the stock exchange for $82. f. Sold $4,113 in short-term investments for $4,113 in cash. g. Borrowed $6,184 from a bank; signed a note due in 20 years. h. Repurchased its common stock for $2,987 in cash. Required: For each of the events (a) through (h), perform transaction analysis and indicate the account and amounts. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on the accounting equation leave cells blank. Enter your answers in millions, (for example, 5.5 million should be entered as 5.5 rather than 5,500,000). Event a. a. a. b. b. C. C. d. d. e. e. f. f. g. g. h. h. Buildings Equipment Cash Cash Assets Short-term investments Cash Cash Short-term investments Liabilities 188 = Notes payable (long-term) E (406) = 335 = = = Dividends payable = 7,616 = (7,616) = = 4,113 = (4,113) = = Notes payable (long-term) E = 42 140 + + + + + Common stock + + + + + + + + + 6,184 + + + Stockholders Equity + Retained earnings (140)
Transcribed Image Text:E2-5 (Algo) Determining Financial Statement Effects of Several Transactions LO2-1, 2-3 Nike, Incorporated, with headquarters in Beaverton, Oregon, is one of the world's leading manufacturers of athletic shoes and sports apparel. The following activities occurred during a recent year. The amounts are rounded to millions, except for par value. a. Purchased additional buildings for $188 and equipment for $260; paid $406 in cash and signed a long-term note for the rest. b. Issued 110 shares of $2 par value common stock for $335 cash. c. Declared $140 in dividends to be paid in the following year. d. Purchased additional short-term investments for $7,616 cash. e. Several Nike investors sold their own stock to other investors on the stock exchange for $82. f. Sold $4,113 in short-term investments for $4,113 in cash. g. Borrowed $6,184 from a bank; signed a note due in 20 years. h. Repurchased its common stock for $2,987 in cash. Required: For each of the events (a) through (h), perform transaction analysis and indicate the account and amounts. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on the accounting equation leave cells blank. Enter your answers in millions, (for example, 5.5 million should be entered as 5.5 rather than 5,500,000). Event a. a. a. b. b. C. C. d. d. e. e. f. f. g. g. h. h. Buildings Equipment Cash Cash Assets Short-term investments Cash Cash Short-term investments Liabilities 188 = Notes payable (long-term) E (406) = 335 = = = Dividends payable = 7,616 = (7,616) = = 4,113 = (4,113) = = Notes payable (long-term) E = 42 140 + + + + + Common stock + + + + + + + + + 6,184 + + + Stockholders Equity + Retained earnings (140)
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