Chapter 2 Homework Problems_FORMATTED

# Chapter 2 Homework Problems_FORMATTED - Chapter 2 Homework...

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

Chapter 2 Homework Problems E2-4 Determining Financial Statement Effects of Several Transactions LO3 Required: For each of the events ( a ) through ( e ), perform transaction analysis and indicate the account, amount, and direction of the effect on the accounting equation (+ for increase, - for decrease, none for no affect). Check that the accounting equation remains in balance after each transaction. The following events occurred for Christensen Company: a. Received investment of \$38,000 cash by organizers and distributed stock to them. b. Purchased \$8,800 of equipment, paying \$1,800 in cash and signing a note for the rest. c. Borrowed \$13,000 cash from a bank. d. Loaned \$1,000 to an employee who signed a note. e. Purchased \$24,948 of land; paid \$8,000 in cash and signed a mortgage note for the balance. Event Assets = Liabilit ies + Stockh olders' Equity a. Cash +38,000 No change 0 Contributed capital + 38,000 b. Equipment +8,800 Notes Payable + 7,000 No change 0

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

View Full Document
Cash -1,800 No change 0 No change 0 c. Cash +13,000 Notes Payable + 13,000 No change 0 d. Note receivable +1,000 No change 0 No change 0 Cash -1,000 No change 0 No change 0 e. Land +24,948 Mortgage note payable + 16,948 No change 0 Cash -8,000 No change 0 No change 0 E2-5 Determining Financial Statement Effects of Several Transactions LO3 Required: For each of the events ( a ) through ( e ), perform transaction analysis and indicate the account, amount, and direction of the effect on the accounting equation (+ for increase, - for decrease, none for no affect). Check that the accounting equation remains in balance after each transaction. Nike, Inc., with headquarters in Beaverton, Oregon,of the world’s leading manufacturers of athletic 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 \$212.0 and equipment for \$31.8; paid \$42.6 in cash and signed a long-term note for the rest. b. Issued \$187.0 in additional stock for cash. c. Declared \$121.1 in dividends to be paid in the following year.
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