Wolverine World Wide, Inc., manufactures military, work, sport, and casual footwear and leather accessories under a variety of brand names, such as Hush Puppies, Wolverine, Merrell, Stride Rite, and Bates, to a global market. The following transactions occurred during a recent year. Dollars are in millions. a. Issued common stock to investors for $18.4 cash (example). b. Purchased $1,638.6 of additional inventory on account. c. Paid $35.1 on long-term debt principal and $2.6 in interest on the debt d. Sold $2,347 of products to customers on account; cost of the products sold was $1,421.6. (Hint: There are two separate effects needed for (d): one for earning revenue and one for incurring an expense.) e. Paid cash dividends of $25 to shareholders. f. Purchased for cash $34.4 in additional property, plant, and equipment. g. Incurred $712.6 in selling expenses, h. Earned $1 of interest on investments, receiving 80 percent in cash. i. Incurred $39 in interest expense to be paid at the beginning of next year. three-fourths in cash and ing the rest on account. Required: For each of the transactions, complete the tabulation, indicating the effect (+for increase and - for decrease) of each transaction (Remember that A L SE; R - E NI; and NI affects SE through Retained Earnings.) The first transaction is provided as an example. (Enter the revenue side and the cost of goods sold side of the transaction on separate lines in the table. Do not net the effects on Assets, Stockholders' Equity or Net Income. Enter your answers in millions.) Balance Sheet Income Statement Stockholders' Transaction Assets Liabilities Revenues Expenses Net Income Equity 18.4 18.4 а. b. 1,638.6 1,638.6 (35.1) 2.6 с. d. 2,347.0 1,421.6 е. f. g. h. i.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Transcribed Image Text:Wolverine World Wide, Inc., manufactures military, work, sport, and casual footwear and leather accessories under a variety of brand names, such as Hush Puppies, Wolverine, Merrell, Stride Rite, and Bates, to a global market. The following transactions occurred during a recent year. Dollars are in millions. a. Issued common stock to investors for $18.4 cash (example). b. Purchased $1,638.6 of additional inventory on account. c. Paid $35.1 on long-term debt principal and $2.6 in interest on the debt d. Sold $2,347 of products to customers on account; cost of the products sold was $1,421.6. (Hint: There are two separate effects needed for (d): one for earning revenue and one for incurring an expense.) e. Paid cash dividends of $25 to shareholders. f. Purchased for cash $34.4 in additional property, plant, and equipment. g. Incurred $712.6 in selling expenses, h. Earned $1 of interest on investments, receiving 80 percent in cash. i. Incurred $39 in interest expense to be paid at the beginning of next year. three-fourths in cash and ing the rest on account. Required: For each of the transactions, complete the tabulation, indicating the effect (+for increase and - for decrease) of each transaction (Remember that A L SE; R - E NI; and NI affects SE through Retained Earnings.) The first transaction is provided as an example. (Enter the revenue side and the cost of goods sold side of the transaction on separate lines in the table. Do not net the effects on Assets, Stockholders' Equity or Net Income. Enter your answers in millions.)