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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. Doillars are in thousands. a. Issued common stock to investors for $14,091 cash (example). b. Purchased $883,418 of additional inventory on account. c. Borrowed $11,400 d. Sold $1,468,068 of products to customers on account; cost of the products sold was e. Declared and paid cash dividends of $21,258. f. Purchased for cash $24,526 in additional property, plant, and equipment. g. Incurred $345,904 in selling expenses, paying three-fourths in cash and owing the rest on account. h. Earned $1.761 interest on investments, receiving 90 percent in cash. 1. Incurred $3,000 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,RE=N1, and N1 affects SE through Retained Earnings). The first transaction is provided as an example. 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,RE=NI, and N I affects SE through Retained Earnings). The first transaction is provided as an example
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