Saputo Inc. produces, markets, and distributes a wide variety of products, including cheese, fluid milk, yogurt, dairy ingredients, and snack cakes. It is the largest dairy processor in Canada and serves customers in over 50 countries. The following transactions occurred during a recent year. Amounts are in millions of dollars.

a. Issued $ 25 in shares to investors (example).

b. Purchased $ 119 of additional property, plant, and equipment for cash.

c. Incurred $ 249 in selling expenses with two- thirds paid in cash and the rest on account.

d. Purchased on account $ 4,947 of raw materials used in processing various dairy products.

e. Earned $ €“ interest on investments; received 50 percent in cash.

f. Paid $ 7 on bank loans.

g. Sold $ 6,930 of products to customers on account; the cost of the products sold was $ 5,013.

h. Incurred $ 3 in interest expense (not yet paid).

i. Declared and paid cash dividends of $ 147.

Required

Complete the tabulation below for each of the transactions, indicating the effect (+ for increase and €“ for decrease) of each transaction. (Remember that A = L + SE, R €“ E = NE, and NE affects SE through retained earnings.) Write €œN€ if there is no effect. The first transaction is provided as an example.

Transcribed Image Text:

Statement of Financial Position Statement of Eamings Shareholders Equity +25 RevenuesExpenses Net Earnings Transaction Assets Liabilities (a) (example) +25