Question

Creative Technology, a computer hardware company based in Singapore, developed the modern standard for computer sound cards in the early 1990s. Recently, Creative has released a line of portable audio products to directly compete with Apple’s popular IPod. Presented here is a recent income statement.


Its beginning and ending assets were $403 and $342, respectively.


Required: Listed here are hypothetical additional transactions. Assuming that they also occurred during the fiscal year, complete the following tabulation, indicating the sign of the effect of each additional transaction (+ for increase, — for decrease, and NE for no effect). Consider each item independently and ignore taxes.
a. Recorded sales on account of $400 and related cost of goods sold of $300.
b. Incurred additional research and development expense of $100, which was paid in cash.
c. Issued additional shares of common stock for S260 cash.
d. Declared and paid dividends of$90


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  • CreatedJuly 01, 2014
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