Nike, Inc., 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 $303 and equipment for $1,202; paid $432 in cash and signed a long-term note for the rest. (b) Issued 10 shares of $1 par value common stock for $695 cash. (c) Declared $1,159 in dividends to be paid in the following year. (d) Purchased additional short-term investments for $5,928 cash. (e) Several Nike investors sold their own stock to other investors on the stock exchange for $7,150. (f) Sold $2,423 in short-term investments for $2,423 in cash. For each of the events (a) through (f), perform transaction analysis and indicate the account, amount in millions, and direction of the effect on the accounting equation. Check that the accounting equation remains in balance after each transaction. Use the following headings: Explain your response to event (e).
Nike, Inc., 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 $303 and equipment for $1,202; paid $432 in cash and signed a long-term note for the rest. (b) Issued 10 shares of $1 par value common stock for $695 cash. (c) Declared $1,159 in dividends to be paid in the following year. (d) Purchased additional short-term investments for $5,928 cash. (e) Several Nike investors sold their own stock to other investors on the stock exchange for $7,150. (f) Sold $2,423 in short-term investments for $2,423 in cash. For each of the events (a) through (f), perform transaction analysis and indicate the account, amount in millions, and direction of the effect on the accounting equation. Check that the accounting equation remains in balance after each transaction. Use the following headings: Explain your response to event (e).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Nike, Inc., 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 $303 and equipment for $1,202; paid $432 in cash and signed a long-term note for the rest.
(b) Issued 10 shares of $1 par value common stock for $695 cash.
(c) Declared $1,159 in dividends to be paid in the following year.
(d) Purchased additional short-term investments for $5,928 cash.
(e) Several Nike investors sold their own stock to other investors on the stock exchange for $7,150.
(f) Sold $2,423 in short-term investments for $2,423 in cash.
- For each of the events (a) through (f), perform transaction analysis and indicate the account, amount in millions, and direction of the effect on the
accounting equation . Check that the accounting equation remains in balance after each transaction. Use the following headings: - Explain your response to event (e).
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