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Nike, Incorporated, with headquarters in Beaverton, Oregon, is one 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, except for par value. a. Purchased additional buildings for $170 and equipment for $260; paid $410 in cash and signed a long-term note for the rest. b. Issued 90 shares of $2 par value common stock for $340 cash. c. Declared $140 in dividends to be paid in the following year. d. Purchased additional short-term investments for $7,716 cash. e. Several Nike investors sold their own stock to other investors on the stock exchange for $86. f. Sold $4,413 in short-term investments for $4,413 in cash. g. Borrowed $6,194 from a bank; signed a note due in 20 years. h. Repurchased its common stock for $3,087 in cash. Required: For each of the events (a) through (h), perform transaction analysis and indicate the account and amounts. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on the accounting equation leave cells blank. Enter your answers in millions, (for example, 5.5 million should be entered as 5.5 rather than 5,500,000). Answer is not complete. Event Assets Liabilities a Buildings a Equipment 170 = 260 = Notes payable (long-term) a Cash (410) = b. Cash 340 = b = Stockholders' Equity + + + + Common stock 180 + Additional paid-in-capital 160- C C = Dividends payable 140 + Retained earnings (140) = + d Short-term investments 7,716 = + d. Cash (7,716) + e. =1 + e. = + f. Cash 4,413 = + f Short-term investments (4.413) = + g Cash 6,194 = + g == Notes payable (long-term) 6,194 + h Cash (3,087)= + Treasury stock h + Nike, Incorporated, with headquarters in Beaverton, Oregon, is one 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, except for par value. a. Purchased additional buildings for $170 and equipment for $260; paid $410 in cash and signed a long-term note for the rest. b. Issued 90 shares of $2 par value common stock for $340 cash. c. Declared $140 in dividends to be paid in the following year. d. Purchased additional short-term investments for $7,716 cash. e. Several Nike investors sold their own stock to other investors on the stock exchange for $86. f. Sold $4,413 in short-term investments for $4,413 in cash. g. Borrowed $6,194 from a bank; signed a note due in 20 years. h. Repurchased its common stock for $3,087 in cash. Required: For each of the events (a) through (h), perform transaction analysis and indicate the account and amounts. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on the accounting equation leave cells blank. Enter your answers in millions, (for example, 5.5 million should be entered as 5.5 rather than 5,500,000). Answer is not complete. Event Assets Liabilities a Buildings a Equipment 170 = 260 = Notes payable (long-term) a Cash (410) = b. Cash 340 = b = Stockholders' Equity + + + + Common stock 180 + Additional paid-in-capital 160- C C = Dividends payable 140 + Retained earnings (140) = + d Short-term investments 7,716 = + d. Cash (7,716) + e. =1 + e. = + f. Cash 4,413 = + f Short-term investments (4.413) = + g Cash 6,194 = + g == Notes payable (long-term) 6,194 + h Cash (3,087)= + Treasury stock h +
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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