Recording Journal Entries
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 transactions were adapted from the annual report of the BMW Group; amounts are in millions of euros.
a. Declared €197 in dividends to be paid next month.
b. Ordered €1,255 of equipment.
c. Paid €694 in dividends declared in prior months.
d. Borrowed €2,655 in cash from banks.
e. Sold equipment at its cost of €285 for cash.
f. Received the equipment ordered in event (b), paying €970 in cash and signing a note for the balance.
g. Purchased investments for €2,220 cash.
Required:
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.