Determining Financial Statement Effects of Various Transactions 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, 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 $13,752 cash (example).

b. Purchased $723,261 of additional inventory on account.

c. Borrowed $61,685 on long-term notes.

d. Sold $1,141,887 of products to customers on account; cost of the products sold was $700,349.

e. Paid cash dividends of $16,079.

f. Purchased for cash $ 17,067 in additional property, plant, and equipment.

g. Incurred $318,240 in selling expenses, paying three-fourths in cash and owing the rest on account.

h. Earned $3,170 interest on investments, receiving 90 percent in cash.

i. Incurred $2,973 in interest expense to be paid at the beginning of next year.

Required:

For each of the transactions, complete the tabulation, indicating the effect (+ for increase and − for decrease) of each transaction. (Remember that A = L + SE, R − E = NI, and NI affects SE through Retained Earnings.) Write NE if there is no effect. The first transaction is provided as an example.

BALANCE SHEET

INCOME STATEMENT

Transaction

Assets

Liabilities

Stockholders’ Equity

Revenues

Expenses

Net Income

(a) (example)

+ 13,752

NE

+ 13,752

NE

NE

NE