Wolverine World Wide, Incorporated, designs, markets, and licenses casual, industrial, performance outdoor, and athletic footw apparel under a variety of brand names, such as Hush Puppies, Wolverine, Merrell, Sperry, and Saucony, to a global market. Th following transactions occurred during a recent year. Dollars are in millions. a. Issued common stock to investors for $14.4 cash (example). b. Purchased $1,685.6 of additional inventory on account. c. Paid $57.1 on long-term debt principal and $4.6 in interest on the debt. d. Sold $2,350 of products to customers on account. e. Cost of the products sold was $1,448.6. f. Paid cash dividends of $23 to shareholders. g. Purchased for cash $34.4 in additional property, plant, and equipment. h. Incurred $706.6 in selling expenses, paying three-fourths in cash and owing the rest on account. i. Earned $1 of interest on investments, receiving 80 percent in cash. j. Incurred $32 in interest expense to be paid at the beginning of next year. Required: For each of the transactions, complete the tabulation, indicating the effect (positive value for increase, negative value for decr and leave blank if no effect) of each transaction. (Remember that Assets = Liabilities + Stockholders' Equity, Revenues - Expen ncome; and Net Income affects Stockholders' Equity through Retained Earnings.) The first transaction is provided as an exam Note: Enter the increasing and decreasing effect of the transaction on separate the table. Do not net the effects o Stockholders' Equity or Net Income. Enter your answers in millions rather than in dollars (for example, 22.4 million should entered as 22.4 rather than 22,400,000). Transaction a. b. C. Assets 14.40 1,685.60 Balance Sheet Liabilities 1,685.60 Stockholders' Equity 14.40 Revenues Income Statement Expenses Net Income

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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Transcribed Image Text:Wolverine World Wide, Incorporated, designs, markets, and licenses casual, industrial, performance outdoor, and athletic footw apparel under a variety of brand names, such as Hush Puppies, Wolverine, Merrell, Sperry, and Saucony, to a global market. Th following transactions occurred during a recent year. Dollars are in millions. a. Issued common stock to investors for $14.4 cash (example). b. Purchased $1,685.6 of additional inventory on account. c. Paid $57.1 on long-term debt principal and $4.6 in interest on the debt. d. Sold $2,350 of products to customers on account. e. Cost of the products sold was $1,448.6. f. Paid cash dividends of $23 to shareholders. g. Purchased for cash $34.4 in additional property, plant, and equipment. h. Incurred $706.6 in selling expenses, paying three-fourths in cash and owing the rest on account. i. Earned $1 of interest on investments, receiving 80 percent in cash. j. Incurred $32 in interest expense to be paid at the beginning of next year. Required: For each of the transactions, complete the tabulation, indicating the effect (positive value for increase, negative value for decre and leave blank if no effect) of each transaction. (Remember that Assets = Liabilities + Stockholders' Equity, Revenues - Expens Income; and Net Income affects Stockholders' Equity through Retained Earnings.) The first transaction is provided as an examp Note: Enter the increasing and decreasing effect of the transaction on separate lines in the table. Do not net the effects on Stockholders' Equity or Net Income. Enter your answers in millions rather than in dollars (for example, 22.4 million should entered as 22.4 rather than 22,400,000). Transaction a. b. C. Assets 14.40 1,685.60 Balance Sheet Liabilities 1,685.60 Stockholders' Equity 14.40 Revenues Prev Income Statement 1 of 15 Expenses Net Income Next >

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