Question: Wolverine World Wide Inc manufactures military work sport and casual

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 $14,083 cash (example).
b. Purchased $878,418 of additional inventory on account.
c. Borrowed $11,000.
d. Sold $1,409,068 of products to customers on account; cost of the products sold was $852,316.
e. Paid cash dividends of $22,737.
f. Purchased for cash $19,397 in additional property, plant, and equipment.
g. Incurred $386,534 in selling expenses, paying three-fourths in cash and owing the rest on account.
h. Earned $370 interest on investments, receiving 90 percent in cash.
i. Incurred $1,395 in interest expense to be paid at the beginning of next year.

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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  • CreatedJuly 01, 2014
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