Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Determining Financial Statement Effects o f Several Transactions Nike Inc with headquarte...

Determining Financial Statement Effects o f Several Transactions Nike Inc with headquarters in Beaverton Oregon is one of the world’s leading manufacturers of athletic shoes and sports

Determining Financial Statement Effects ev al ansactions

Nike, Inc., with headquarters in Beaverton, Oregon, is one of the world’s leading manufacturers of ath- letic shoes and sports apparel. The following activities occurred during a recent year. The amounts are rounded to millions of dollars.

 

a. Purchased additional buildings for $182 and equipment for $21.9; paid $48.1 in cash and signed a long-term note for the rest.

b. Issued $253.6 in additional stock for cash.

c. Declared $179.2 in dividends to be paid in the following year.

d. Purchased additional short-term investments for $400.8 cash.

e. Several Nike investors sold their own stock to other investors on the stock exchange for $36.

f. Sold $1.4 in short-term investments in other companies for $1.4 cash.

 

Required:

1. For each of these events, perform transaction analysis and indicate the account, amount, and di- rection of the effect on the accounting equation. Check that the accounting equation remains in balance after each transaction. Use the following headings:

 

ent Assets

Liabilities Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

2. Explain your response to event (e).

Jun 22 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions