{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 3 Homework Problems_FORMATTED

Chapter 3 Homework Problems_FORMATTED - Chapter 3 Homework...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 3 Homework Problems E3-6 Determining Financial Statement Effects of Various Transactions LO4 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 $7,059 cash (example). b. Purchased $778,472 of additional inventory on account. c. Borrowed $60,800. d. Sold $1,239,568 of products to customers on account; cost of the products sold was $745,547. e. Paid cash dividends of $21,458. f. Purchased for cash $25,026 in additional property, plant, and equipment. g. Incurred $345,984 in selling expenses, paying three-fourths in cash and owing the rest on account. h. Earned $1,760 interest on investments, receiving 90 percent in cash. i. Incurred $2,960 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.) Select NE if there is no effect. The first transaction is provided as an example.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
E3-7 Recording Journal Entries LO4
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern