Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image

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 $170 and equipment for $260; paid $410 in cash and signed a long-term note for the rest. b. Issued 90 shares of $2 par value common stock for $340 cash. c. Declared $140 in dividends to be paid in the following year. d. Purchased additional short-term investments for $7,716 cash. e. Several Nike investors sold their own stock to other investors on the stock exchange for $86. f. Sold $4,413 in short-term investments for $4,413 in cash. g. Borrowed $6,194 from a bank; signed a note due in 20 years. h. Repurchased its common stock for $3,087 in cash. Required: 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 balance sheet with a minus sign. If no impact on the accounting equation leave cells blank. Enter your answers in millions, (for example, 5.5 million should be entered as 5.5 rather than 5,500,000). Answer is not complete. Event Assets Liabilities a Buildings a Equipment 170 = 260 = Notes payable (long-term) a Cash (410) = b. Cash 340 = b = Stockholders' Equity + + + + Common stock 180 + Additional paid-in-capital 160- C C = Dividends payable 140 + Retained earnings (140) = + d Short-term investments 7,716 = + d. Cash (7,716) + e. =1 + e. = + f. Cash 4,413 = + f Short-term investments (4.413) = + g Cash 6,194 = + g == Notes payable (long-term) 6,194 + h Cash (3,087)= + Treasury stock h +

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

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby

5th edition

78025915, 978-1259115400, 1259115402, 978-0078025914

More Books

Students also viewed these Accounting questions

Question

Show that [see (8. 39)]. av. var () 1 TIZ t-1 Exa

Answered: 1 week ago