Refer to E2-6.
NIKE, Inc., with its Canadian headquarters in Thornhill, Ontario, is one of the world's lead- ing manufacturers of athletic shoes and sports apparel. The following activities occurred during a recent year. The amounts are presented in millions of dollars.

a. Purchased $216 in equipment; paid by signing a $5 long-term note and fulfilling the rest with cash.
b. Issued $21 in additional shares for cash contributions made by shareholders.
c. Several Nike investors sold their own shares to other investors on the stock exchange for $110 per share.
Required:
1. For each of the events in E2-6, prepare journal entries, checking that debits equal credits.
2. Explain your response to event (c).

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Shareholders' Equity Event Liabilities Assets %3D