Wolverine World Wide, Inc., manufactures military, work, sport, and casual footwear and leather accessories under a variety
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, 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 $48,869 cash (example).
b. Purchased $299,794 of additional raw materials inventory on account.
c. Borrowed $58,181 on long-term notes.
d. Sold $413,957 of products to customers on account; cost of the products sold was $290,469.
e. Paid cash dividends of $2,347.
/ Purchased $18,645 in additional property, plant, and equipment.
g. Incurred $85,993 in selling expenses, paying two-thirds in cash and owing the rest on account.
h. Earned $1,039 interest on investments, receiving 90 percent in cash.
i. Incurred $4,7 17 in interest expense to be paid at the beginning of next year.
Required:
For each of the transactions, complete the tabulation, indicating the effect ( + for increase and - for decrease) of each transaction. (Remember that A = L + SE. R - E = NI. and NI affects SE through Retained Earnings.) Write NE if there is no effect. The first transaction is provided as an example.
Step by Step Answer:
