Determining Financial Statement Effects of Various Transactions
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 $7,047 cash (example).
b. Purchased $765,472 of additional inventory on account.
c. Borrowed $59,500.
d. Sold $1,220,568 of products to customers on account; cost of the products sold was $734,547.
e. Paid cash dividends of $20,758.
f. Purchased for cash $24,126 in additional property, plant, and equipment.
g. Incurred $345,183 in selling expenses, paying three-fourths in cash and owing the rest on account.
h. Earned $1,757 interest on investments, receiving 90 percent in cash.
i. Incurred $2,850 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.) Write NE if there is no effect. The first transaction is provided as anexample.

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INCOME STATEMENT BALANCE SHEET Stockholders Revenues Expenses Net Income Transaction Assets Liabilities Equity (a) (example) +7,047 +7,047 NE NE NE NE