Determining financial statement effects of several transactions
NIKE, Inc., with headquarters in Beaverton, Oregon, is one of the world's leading manufacturers of athletic shoes and sports apparel. The following activities occurred during the recent year. The amounts are presented in millions of dollars.
a. Purchased $216.3 in equipment; paid a $5 long term note and fulfilling the rest with cash
b. issued $21.1 in additional stock for cash contributions made by stockholders.
c. Several NIKE investors sold their own stock to other investors on the stock exchange for $21 per share of stock
Required:
1. For each of these events, perform transaction analysis and indicate the account, amount in millions), and direction of the effect on the accounting equation, Check that the accounting equation remains in balance after each transaction. Use the following headings:
Event Assets = Liabilities + Stockholders' Equity
2. Explain your response on transaction c
3. for each event prepare journal entries, checking that debits equal credits; explain your response on transaction c
NIKE, Inc., with headquarters in Beaverton, Oregon, is one of the world's leading manufacturers of athletic shoes and sports apparel. The following activities occurred during the recent year. The amounts are presented in millions of dollars.
a. Purchased $216.3 in equipment; paid a $5 long term note and fulfilling the rest with cash
b. issued $21.1 in additional stock for cash contributions made by stockholders.
c. Several NIKE investors sold their own stock to other investors on the stock exchange for $21 per share of stock
Required:
1. For each of these events, perform transaction analysis and indicate the account, amount in millions), and direction of the effect on the accounting equation, Check that the accounting equation remains in balance after each transaction. Use the following headings:
Event Assets = Liabilities + Stockholders' Equity
2. Explain your response on transaction c
3. for each event prepare journal entries, checking that debits equal credits; explain your response on transaction c
Comments
Post a Comment