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Excercise 10 - ACCOUNTING Exercise 10 McDonalds 1 ECONOMIC...

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1 ACCOUNTING Exercise 10 McDonald’s
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2 ECONOMIC EVENTS 1. Spend $50,000,000 for food (meat, bread fries, etc) and food containers. 2. Receive $100,000,000 cash from food sales. 3. Record $40,000,000 Cost of Sales. 4. Receive $5,000,000 revenues from franchised restaurants. 5. Receive a 1,000,000 Euros advertising invoice from agency in Europe. Exchange rate is $1.00 = 1 euro. 6. Pay $5,000,000 for salaries. 7. Receive $10,000,000 cash from issuing Bonds Payable. 8. Pay $1,000,000 to buy back some of the company’s own shares. 9. Pay $2,000,000 to buy shares of another company (short term). 10. Buy Euros to pay the advertising invoice. Exchange rate is $1.00 = 2 Euros. 11. Pay $1,000,000 interest on Bonds Payable. 12. Receive $50,000 cash dividend from our investment in other company’s stock.
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3 ECONOMIC EVENTS 13. Spend $500,000 on maintenance on restaurant properties. 14. Sell treasury stock for $1,300,000. 15. Sell stock in another company for $2,400,000. 16. Record $10,000,000 depreciation on restaurant properties. 17. Transfer Net Income (Loss) to Retained Earnings.
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4 JOURNAL ENTRIES 1. 2. 3. 4. 5.
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5 JOURNAL ENTRIES 6. 7. 8. 9. 10.
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6 JOURNAL ENTRIES 11. 12. 13. 14. 15.
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7 JOURNAL ENTRIES 16. 17. 18. 19. 20.
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8 Cash Reference Transaction Current Balance Debit Credit Debit Credit 500,000,000
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9 Restaurant Properties Reference Transaction Current Balance Debit Credit Debit Credit 300,000,000
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10 Common Stock Reference Transaction Current Balance Debit Credit Debit Credit 400,000,000
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11 Paid in Capital Reference Transaction Current Balance Debit Credit Debit Credit 200,000,000
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12 Retained Earnings Reference Transaction Current Balance Debit Credit Debit Credit 200,000,000
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13 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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14 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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15 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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16 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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17 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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18 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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19 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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20 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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