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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 $14,089 cash (example). b. Purchased $887,418 of additional inventory on account. c. Borrowed $11,400. Sold $1,454,068 of products to customers on account, cost of the products sold was d. $743,547 e. Declared and paid cash dividends of $21,758. f. Purchased for cash $24,126 in additional property, plant, and equipment. g. Incurred $345,544 in selling expenses, paying three-fourths in cash and owing the rest on account. h. Earned $1,762 interest on investments, receiving 90 percent in cash. i. Incurred $2,900 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. Balance Sheet Liabilities Transaction Income Statement Expenses Net Income Assets Stockholders' Equity 14,089 Revenues a 14,089 b. C. d. e. f. g. h
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