Question

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 a recent year. The amounts are rounded to millions, except for par value. a. Purchased additional buildings for $303 and equipment for $1.202: paid $432 in cash and signed a long-term note for the rest b. Issued 10 shares of $1 par value common stock for $695 cash. c. Declared $1,159 in dividends to be paid in the following year. d. Purchased additional short-term investments for $5,928 cash. e. Several Nike investors sold their own stock to other investors on the stock exchange for $7.150. f. Sold $2,423 In short-term investments for $2.423 in cash.

Answer 1

Event	Assets			=	Liabilities			+	Stockholder's Equity
a	Buildings		$303	=	Long-term Note		$1,073
	Equipment		$1,202	=
	Cash		-$432	=
b	Cash		$695						Common Stock		$10
									Additional paid in capital-Common stock		$685
c									Retained earnings		-$1,159
					Dividend Distributable		$1,159
d	Short-Term Investments		$5,928
	Cash		-$5,928
e	NO IMPACT
f	Cash		$2,423
	Short-Term Investments		-$2,423