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.

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