Question

Homework Sarved Have a nice 17 now Cannon Sporting Goods 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 $168 and equipment for $270; paid $402 in cash and signed a long-term note for the rest b. Issued 90 shares of $2 par value common stock for $345 cash. c. Declared $145 in dividends to be paid in the following year. d. Purchased additional short-term investments for $7,816 cash. e. Several Cannon Sporting Goods investors sold their own stock to other investors on the stock exchange for $84. f. Sold $4,413 in short-term investments for $4,413 in cash. Required: For each of the events (a) through (1. perform transaction analysis and indicate the account, amount, and direction of the effect it 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.) Assets Stockholders' Equity Liabilities Notes payable (long-term) Event a.. Buildings Equipment Cash b. Cash 200 Common stock Additional paid-in capital Dividends payable c Dividends payable d. Short-term investments Cash Prey 1 of 6 !!! Next >

Answer 1

Solution:

Event	Assets	=	Liabilities	+	Stockholder's Equity
a	Buildings	$168.00		Notes payable (Long term)	$36.00
	Equipment	$270.00
	Cash	-$402.00
b	Cash	$345.00					Common stock	$180.00
							Additional paid in capital	$165.00
c				Dividend payable	-$145.00		Dividends	-$145.00
d	Short term investments	$7,816.00
	Cash	-$7,816.00
e
f	Cash	$4,413.00
	Short term investments	-$4,413.00