Question

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, Merrell Stride Rite, 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 $14.081 cash (example) b. Purchased $882,418 of additional inventory on account. d. Sold S1,487,068 of products to customers on account, cost of the products sold was $739,547 1. Purchased for cash $26.026 In additional property, plant, and equipment. 9. Incurred $345,344 in selling expenses, paying three-fourths in cash and owing the rest on account h. Eamed $1,759 interest on investments, receiving 90 percent in cash Incurred $2,930 in interest expense to be paid at the beginning of next year. Required: For each of the transactions, complete the tabulation, indicating the effect positivealue for increase, negative value for decrease, and leave blank i no effect of each transaction. Remember that A-L+SER-E - NI, and I affects through Retained Earnings). The first transaction is provides an example, "Enter the revenue side and the cost of of goods sold side of the transaction on separate lines in the table Do not net the effects on Stockholders' Equity or Net Income.) Income Statement Expenses Net Income Transaction Balance Sheet Assets Liabilities Stockholders Equity 14.001 14.081 Revenues D d 9 h

Answer 1

						Amount $
		Balance Sheet			Income Stat.
Transactions	Assets	Liabilities	Stockholder's Equity	Revenues	Expenses	Net Income
a	14,081		14,081
b	882,418	882,418
c	10,700	10,700
d	1,487,068		1,487,068	1,487,068		1,487,068
	-739,547		-739,547		739,547	-739,547
e	-22,558		-22,558
f	26,026
	-26,026
g	-259,008	86,336	-345,344		345,344	-345,344
h	1,759		1,759	1,759		1,759
i		2,930	-2,930		2,930	-2,930