Question: BMW Group headquartered in Munich Germany manufactures several automotive brands

BMW Group, headquartered in Munich, Germany, manufactures several automotive brands including BMW Group, MINI, and Rolls-Royce. Financial information is reported in the euro (€) monetary unit using International Financial Reporting Standards (IFRS) as applicable to the European Union. The following activities were adapted from the annual report of the BMW Group; amounts are in millions of euros.
a. Declared €1,508 in dividends to be paid next month.
b. Ordered €2,598 of equipment.
c. Paid €852 in dividends declared in prior months.
d. Borrowed €5,899 in cash from banks.
e. Sold equipment at its cost of €53 for cash.
f. Received the equipment ordered in event (b), paying €2,250 in cash and signing a note for the balance.
g. Purchased investments for €2,616 cash.

Prepare journal entries for each transaction. Be sure to use good referencing and categorize each account as an asset (A), liability (L), or stockholders’ equity (SE). If a transaction does not require a journal entry, explain the reason.

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  • CreatedJuly 01, 2014
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