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. Purchased additional buildings for $182 and equipment for $280; paid $404 in cash and signed a long-term note for the rest. Issued 120 shares of $2 par value common stock for $350 cash. Declared $145 in dividends to be paid in the following year. Purchased additional short-term investments for $7,816 cash. Several Cannon Sporting Goods investors sold their own stock to other investors on the stock exchange for $92. Sold $4,213 in short-term investments for $4,213 in cash. Journal entry

1. Dr  Building        182

  Dr   Equipment  280

       Cr    Cash               404  

       Cr  Notes payable 58

2. Dr  Cash      350

          Cr  Common stock   240

          Cr  Share premium   110

3. Dr  Retained earning    145

          Cr    Dividend payable    145

5. Dr Short term investment  7816

          Cr   Cash                             7816

6.No entry

7.  Dr   Cash      4213

            Cr  Short term investment    4213

Explanation:

1.Building and equipment purchased on cash and signed promissory note.

2. Share isssue at par and premium.

3.First dividend has to declared and then its payment is made.

answer; is usually (less than) the socially optimal level of consumption;

the third answer is correct.