Question

In: Accounting

Saputo Inc. produces, markets, and distributes a wide variety of products, including cheese, fluid milk, yogurt,...

Saputo Inc. produces, markets, and distributes a wide variety of products, including cheese, fluid milk, yogurt, dairy ingredients, and snack cakes. It is the largest dairy processor in Canada and serves customers in over 50 countries.

  

The following transactions occurred during a recent year. Amounts are in millions of dollars.
a. Issued $30 in shares to investors (example).
b.

Purchased $149 of additional property, plant, and equipment for cash.

c. Incurred $309 in selling expenses with two-thirds paid in cash and the rest on account.
d. Purchased on account $6,128 of raw materials used in processing various dairy products.
e. Earned $7 interest on investments; received 50 percent in cash.
f. Paid $21 on bank loans.
g. Sold $8,422 of products to customers on account; the cost of the products sold was $6,263.
h. Incurred $9 in interest expense (not yet paid).
i. Declared and paid cash dividends of $184.

  

Required:

Complete the tabulation below for each of the transactions, indicating the effect of each transaction. (Remember that A = L + SE, R − E = NE, and NE affects SE through retained earnings.) The first transaction is provided as an example. (Enter any decreases to account balances with a minus sign. Enter your answers in millions.)

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Saputo Inc.
No. A = L + SE R - E = NE Remarks
a.         30.00       30.00 Cash will increase by $ 30 and Share capital will increase by $ 30.
b. Cash will decrease by $ 149 and Property plant, and equipment will increase by $ 149. Overall no impact in total Assets and liabilities and stockholder's equity.
c.     (206.00)       103.00       309.00     (309.00) Expense will increase by $ 309. 2/3 of $ 309= $ 206 paid in cash and 1/3 of $ 309= $ 103 on account.
d. 6,128.00 6,128.00 As it is purchased on account so inventory asset will increase by $ 61,28 and liability will increase by $ 6,128.
e.           7.00           7.00           7.00 Revenue and asset will increase by $ 7.
f.       (21.00)       (21.00) Cash and liability will decrease by $ 21.
g. 2,159.00 8,422.00 6,263.00 2,159.00 Accounts receivable will increase by $ 8,422 but inventory will decrease by $ 6,253 so net impact on assets is $ 2,159. Revenue will increase by $ 8,422 and Expense will increase by $ 6,263.
h.           9.00           9.00          (9.00) Expense and liability will decrease by $ 9.
i.     (184.00) (184.00)                -   Cash and Share capital will decrease by $ 184.
Totals 7,913.00 6,219.00 (154.00) 8,429.00 6,581.00 1,848.00

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