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 (Ac‚¬) 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 Ac‚¬197 in dividends to be paid next month.

b. Ordered Ac‚¬1,255 of equipment.

c. Paid Ac‚¬694 in dividends declared in prior months.

d. Borrowed Ac‚¬2,655 in cash from banks.

e. Sold equipment at its cost of Ac‚¬285 for cash.

f. Received the equipment ordered in event (b), paying Ac‚¬970 in cash and signing a note for the balance.

g. Purchased investments for Ac‚¬2,220 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.