Excercise 9 - 1 ACCOUNTING Exercise 9 IKEA 2 ECONOMIC...

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Unformatted text preview: 1 ACCOUNTING Exercise 9 IKEA 2 ECONOMIC EVENTS 1. Build stores for $60,000,000, sign a ten year, $60,000,000 Note Payable with the bank. 2. Acquire $20,000,000 of inventory on credit. 3. Make credit sales of $35,000,000, plus 8% sales tax. 4. Record $15,000,000 Cost of Sales. 5. Pay $2,000,000 for salaries. 6. Customers pay within 10 days. Our terms are 2/10, N30. 7. Pay sales tax to the state. 8. Record depreciation on the stores (20 year lives) 9. Accrue interest on the Note Payable (10%) 10. Transfer Net Income (loss) to Retained Earnings. 3 JOURNAL ENTRIES 1. 2. 3. 4. 5. 4 JOURNAL ENTRIES 6. 7. 8. 9. 10. 5 Cash Reference Transaction Current Balance Debit Credit Debit Credit 40,000,000 6 Common Stock Reference Transaction Current Balance Debit Credit Debit Credit 20,000,000 7 Paid in Capital Reference Transaction Current Balance Debit Credit Debit Credit 10,000,000 8 Retained Earnings Reference Transaction Current Balance Debit Credit Debit Credit 10,000,000 9 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 10 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 11 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 12 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 13 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 14 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 15 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 16 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 17 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 18 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 19 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 20 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 21 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 22 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 23 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 24 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 25 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 26 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 27 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 28 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 29 TRIAL BALANCE Account Debit Credit Total 30...
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This note was uploaded on 11/03/2010 for the course ACCT 325 taught by Professor Anderson,p during the Winter '09 term at Azusa Pacific.

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Excercise 9 - 1 ACCOUNTING Exercise 9 IKEA 2 ECONOMIC...

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