Question
Wolverine World Wide, Inc., manufactures military, work, sport, and casual footwear and leather accessories under a variety of brand names, such as Hush Puppies, Wolverine,
Wolverine World Wide, Inc., manufactures military, work, sport, and casual footwear and leather accessories under a variety of brand names, such as Hush Puppies, Wolverine, and Bates, to a global market. The following transactions occurred during a recent year. Dollars are in thousands.
a.Issued common stock to investors for $14,080 cash (example).b.Purchased $887,418 of additional inventory on account.c.Borrowed $11,700.d.Sold $1,398,068 of products to customers on account; cost of the products sold was $743,547.e.Declared and paid cash dividends of $22,258.f.Purchased for cash $24,226 in additional property, plant, and equipment.g.Incurred $345,864 in selling expenses, paying three-fourths in cash and owing the rest on account.h.Earned $1,763 interest on investments, receiving 90 percent in cash.i.Incurred $2,910 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 decrease, and zero for a net effect of zero) of each transaction. (Remember that A = L + SE, R - E = NI, and NI affects SE through Retained Earnings). The first transaction is provided as an example.
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