{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 3 Homework Problems_FORMATTED

# Chapter 3 Homework Problems_FORMATTED - Chapter 3 Homework...

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

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.

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

View Full Document
E3-7 Recording Journal Entries LO4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• 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.

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

• 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.

Dana University of Pennsylvania ‘17, Course Hero Intern

• 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.

Jill Tulane University ‘16, Course Hero Intern