Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

E2-5 (Algo) Determining Financlal Statement Effects of Several Transactlons LO2-1, 2-3 Nike, Incorporated, with headquarters in Beaverton, Oregon, is one of the world's leading manufacturers

image text in transcribed

E2-5 (Algo) Determining Financlal Statement Effects of Several Transactlons 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 $190 and equipment for $260; paid $404 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 $145 in dividends to be paid in the following year. d. Purchased additional short-term investments for $7,816 cash. e. Several Nike investors sold their own stock to other investors on the stock exchange for $86. f. Sold $4,313 in short-term investments for $4,313 in cash. g. Borrowed $6,104 from a bank; signed a note due in 20 years. h. Repurchased its common stock for $3,047 in cash. Requlred: 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 belence sheet with a minus slgn. If no Impect on the accounting equation leave cells blenk. Enter your answers In millions, (for exemple, 5.5 millilon should be entered as 5.5 rather then 3,500,000 )

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Holding Company Audit Compliance And Risk Management

Authors: Anthony Ludovic Assassa

1st Edition

6206122727, 978-6206122722

More Books

Students also viewed these Accounting questions