{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

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

Info iconThis preview shows pages 1–51. Sign up to view the full content.

View Full Document Right Arrow Icon
1 ACCOUNTING Exercise 27 Harley Davidson
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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.
Background image of page 2
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.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
4 JOURNAL ENTRIES 1. 2. 3. 4. 5.
Background image of page 4
5 JOURNAL ENTRIES 6. 7. 8. 9. 10.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
6 JOURNAL ENTRIES 11. 12. 13. 14. 15.
Background image of page 6
7 JOURNAL ENTRIES 16. 17. 18. 19. 20.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
8 Cash Reference Transaction Current Balance Debit Credit Debit Credit 360,000,000
Background image of page 8
9 Stamping Equipment Reference Transaction Current Balance Debit Credit Debit Credit 10,000,000
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
10 Production Line Equipment Reference Transaction Current Balance Debit Credit Debit Credit 10,000,000
Background image of page 10
11 Manufacturing Building Reference Transaction Current Balance Debit Credit Debit Credit 20,000,000
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
12 Common Stock Reference Transaction Current Balance Debit Credit Debit Credit 200,000,000
Background image of page 12
13 Paid in Capital Reference Transaction Current Balance Debit Credit Debit Credit 100,000,000
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
14 Retained Earnings Reference Transaction Current Balance Debit Credit Debit Credit 100,000,000
Background image of page 14
15 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
Background image of page 15

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
16 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
Background image of page 16
17 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
Background image of page 17

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
18 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
Background image of page 18
19 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
Background image of page 19

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
20 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
Background image of page 20
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}