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Kiwi Incorporated, headquartered in Boston, Massachusetts, designs, manufactures, and markets headphones and other audio components. The following is Kiwi's (simplified) balance sheet from a recent
Kiwi Incorporated, headquartered in Boston, Massachusetts, designs, manufactures, and markets headphones and other audio components. The following is Kiwi's (simplified) balance sheet from a recent fiscal year ending on June 30. Assume that the following transactions (in thousands) occurred during the next fiscal year (ending on June 30,2023 ): a. Borrowed $18,346 from banks due in two years. b. Purchased additional investments for $23,850 cash; one-fifth were long term and the rest were short term. c. Purchased property, plant, and equipment; paid $9,653 in cash and signed a short-term note for $1,490. d. Issued additional shares of common stock for $1,550 in cash; total par value was $1 and the rest was in excess of par value. 1 Record the $18,346 loan from banks due in two years. 2 Record the purchase of additional investments for $23,850 cash with one-fifth being long-term and the balance being short-term. 3 Record the purchase of property, plant, and equipment by paying $9,653 cash and signing a short-term note for $1,490. 4 Record the issuance of additional shares for $1,550 cash; total par value was $1 and the rest was in excess of par value. 5 Record the sale of short-term investments costing $19,088 for $19,088 cash
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