exercise 27 - 1 ACCOUNTING Exercise 27 Harley Davidson 2...

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Unformatted text preview: 1 ACCOUNTING Exercise 27 Harley Davidson 2 ECONOMIC EVENTS 1. Spend $20,000,000 building 10,000 V-rod motorcycles. 2. Sell 9,000 V-rod motorcycles, on credit, for $3,000 each. 3. Record $18,000,000 Cost of Sales. 4. Pay $1,000,000 for production equipment maintenance. 5. Receive $20,000,000 cash by issuing bonds payable (5 year life, 10% rate). 6. Pay $1,000,000 to buy back our own company’s stock. 7. Pay $2,000,000 for advertising. 8. Pay $2,000,000 to buy stock of another company (short term). 9. Pay $1,500,000 to buy bonds of another company (short term). 10. Receive $100,000 dividend from the investment in another company’s stock. 11. Receive $100,000 for interest from the investment in another company’s bonds. 12. Sell the bond investment for $1,300,000. 13. Sell the stock investment for $2,500,000. 3 ECONOMIC EVENTS 14. Sell treasury stock back to the marketplace for $1,100,000. 15. End of year. Record depreciation on stamping equipment (10 year life, Sum of the Years’ Digits method). 16. End of year. Record depreciation on production line equipment (10 year life, Double Declining Balance method). 17. End of year. Record depreciation on the manufacturing building (40 year life, Straight Line method) 18. End of Year. Accrue $2,000,000 interest on Bonds Payable. 19. End of year. 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 Cash Reference Transaction Current Balance Debit Credit Debit Credit 360,000,000 9 Stamping Equipment Reference Transaction Current Balance Debit Credit Debit Credit 10,000,000 10 Production Line Equipment Reference Transaction Current Balance Debit Credit Debit Credit 10,000,000 11 Manufacturing Building Reference Transaction Current Balance Debit Credit Debit Credit 20,000,000 12 Common Stock Reference Transaction Current Balance Debit Credit Debit Credit 200,000,000 13 Paid in Capital Reference Transaction Current Balance Debit Credit Debit Credit 100,000,000 14 Retained Earnings Reference Transaction Current Balance Debit Credit Debit Credit 100,000,000 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 _________________ 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 TRIAL BALANCE…page 1 Account Debit Credit 50 TRIAL BALANCE…page 2 Account Debit Credit Total 51...
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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 27 - 1 ACCOUNTING Exercise 27 Harley Davidson 2...

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