Practice Problems Problem #1-Nike Assume Nike, Inc. had the following condensed balance sheet on May 31, 2016 (in thousands) Assets Liabilities and Owners' Equity Cash Accounts Receivable 1,754,137 Inventorie $445,421 1,338,640 1,823,009 Notes Payable Accounts Payable Other Liabilities $553,153 687,121 965,095 Equipment and other assets Total liabilities $2,205,369 Owners' equity Total liabilities and 3,155,838 Total assets $5,361,207 owners' equity $5,361,207 Consider the following transaction that occurred during the first three days of June (in thousands of dollars) 1 Inventories were acquired for cash, S160,000 2 Inventories were acquired on open account (accounts payable), S190,000 3Unsatisfactory shoes.acquired on open account in March were returned by Nike for full 4 5 6 7 8 credit, $40,000 Cash was disbursed on account (to reduce accounts payable), $170,000 Collected cash on account, $180,000 Borrowed cash from a bank and issued a note for $500,000 Sold additional common stock for cash to new investors, S900,000 The president of the company sold 10,000 shares of his person through his stockbroker al holdings of Nike stock Requirement 1 Prepare journal entries for the above transactions, indicating whether the account is an asset (A), liability (L), stockholder's equity (SE), revenue (R), or expense (E) account (the first one is shown below for an example.) 2 Prepare a balance sheet as of June 3 JE: Inventory (A) S160,000 Cash (A) S160,000