Question

Puri. ITINE, IL-, TVILIILUUYULLISHT LUVLI LUI, VILY, VIR UT LIMITU LUTY TITUITUTULLUILIS VI LILIL VIIVI U 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, pald $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 pald 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. Required: For each of the events (a) through (1), perform transaction analysis and Indicate the account, amount, and direction of the effect (+ for Increase and - for decrease) on the accounting equation. Check that the accounting equation remains in balance after each transaction. (If no Impact on the accounting equation leave cells blank. Enter your answers in millions.) Event Assets Liabilities Stockholders' Equity Buildings Equipment Cash 303 1.202 (432)

Answer 1

Event	Assets		=	Liabilities		+	Stockholders Equity
a	Building	$        303
	Equipment	$    1,202
	Cash	$     (432)		Note payable ($303+$1,202-$432)	$   1,073
b	Cash (10*$695)	$    6,950					Common stock	$          10
							Paid in capital in excess of par	$    6,940
c				Dividend payable	$   1,159
							Retained earnings	$ (1,159)
d	Cash	$ (5,928)
	Short term investments	$    5,928
e
f	Cash	$    2,423
	Short term investments	$ (2,423)

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