exercise 26 - 1 ACCOUNTING Exercise 26 General Motors 2...

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Unformatted text preview: 1 ACCOUNTING Exercise 26 General Motors 2 ECONOMIC EVENTS 1. Spend $100,000,000 to design a new car model. 2. Spend $1,000,000 for prototypes of the car. 3. Spend $1,000,000 developing a marketing brochure. 4. Pay $2,000,000 for manufacturing plant supplies. 5. Create a $500,000 Petty Cash fund. 6. Pay $500,000 to install improvements in a building we are leasing from another company. 7. Spend $2,000,000 for a two year insurance policy. 8. Loan $2,000,000 to a supplier. 9. Spend $1,800,000,000 producing 60,000 cars. 10. Sell 50,000 cars to customers, on credit, for $4,000,000,000 11. Record $1,500,000,000 Cost of Sales. 12. Spend $200,000 from the petty cash fund on miscellaneous expenses. 13. Accrue $10,000,000 estimated warranty costs (5 year warranty). 14. Accrue $8,000,000 estimated bad debts. 15. Sell the computers for $7,000,000 16. Pay $6,000,000 for warranty costs. 17. Write off $2,000,000 of Accounts Receivable. 3 ECONOMIC EVENTS 18. Pay $30,000,000 for salaries. 19. Pay $1,000,000 for flood repairs (first flood ever). 20. End of year. Record use of $1,000,000 of plant supplies. 21. End of year. Record use of the first year of insurance. 22. End of year. Accrue interest on Note Receivable (10%). 23. End of year. Record depreciation on the manufacturing plant (20 year life, DDB). 24. End of year. Record depreciation on leasehold improvements (5 year lease, SL) 25. End of year. Accrue estimated legal fees of $1,000,000 26. End of year. Accrue $1,000,000 for employee vacations (will be taken within one year). 27. Transfer Net Income (Loss) to Retained Earnings. 4 JOURNAL ENTRIES 1. 2. 3. 4. 5. 5 JOURNAL ENTRIES 6. 7. 8. 9. 10. 6 JOURNAL ENTRIES 11. 12. 13. 14. 15. 7 JOURNAL ENTRIES 16. 17. 18. 19. 20. 8 JOURNAL ENTRIES 21. 22. 23. 24. 25. 9 JOURNAL ENTRIES 26. 27. 28. 29. 30. 10 Cash Reference Transaction Current Balance Debit Credit Debit Credit 20,000,000,000 11 Manufacturing Plant Reference Transaction Current Balance Debit Credit Debit Credit 2,000,000,000 12 Computers Reference Transaction Current Balance Debit Credit Debit Credit 40,000,000 13 Computers Accum Depre Reference Transaction Current Balance Debit Credit Debit Credit 34,000,000 14 Common Stock Reference Transaction Current Balance Debit Credit Debit Credit 10,000,000,000 15 Paid in Capital Reference Transaction Current Balance Debit Credit Debit Credit 10,000,000,000 16 Retained Earnings Reference Transaction Current Balance Debit Credit Debit Credit 2,006,000,000 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 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 30 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 31 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 32 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 33 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 34 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 35 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 36 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 37 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 38 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 39 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 40 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 41 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 42 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 43 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 44 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 45 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 46 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 47 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 48 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 49 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 50 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 51 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 52 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 53 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 54 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 55 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 56 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 57 TRIAL BALANCEpage 1 Account Debit Credit 58 TRIAL BALANCEpage 2 Account Debit Credit 59...
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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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exercise 26 - 1 ACCOUNTING Exercise 26 General Motors 2...

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