Excercise 6 - ACCOUNTING Exercise 6 Norwegian Cruise Line 1...

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1 ACCOUNTING Exercise 6 Norwegian Cruise Line
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2 ECONOMIC EVENTS 1. Construct an $800,000,000 cruise ship, borrow money on a Note Payable to finance the construction. 2. Pay $10,000,000 for specialty restaurant food. 3. Pay $8,000,000 for retail store merchandise. 4. Pay $2,000,000 for ship supplies. 5. Pay $2,000,000 for a two year insurance policy. 6. Collect $250,000,000 from passengers for cabin revenue. 7. Collect $30,000,000 from passengers for meals at ship restaurants. 8. Record $10,000,000 for restaurant Cost of Sales. 9. Collect $20,000,000 from passengers for purchases at ship retail shops. 10. Record $5,000,000 for retail shop Cost of Sales 11. Collect $10,000,000 from passengers at ship casinos. 12. Record $1,000,000 for ship casino pay outs to winning passengers. 13. Collect $5,000,000 from passengers for island excursions. 14. Pay $3,000,000 to island excursion operators for their share. 15. Pay $2,000,000 to islands for terminal fees
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3 ECONOMIC EVENTS 16. Pay $2,000,000 to register the company trademark. 17. Pay $5,000,000 for entertainment costs. 18. Pay $50,000,000 for salaries. 19. Pay $1,000,000 for ship maintenance. 20. Pay $30,000,000 for ship fuel. 21. Record use of $1,000,000 of ship supplies. 22. Declare a $1,000,000 dividend. 23. End of year. Record use of first year of insurance. 24. End of year. Amortize trademark (20 year life). 25. End of year. Record depreciation on the ship (40 year life, straight line). 26. End of year. Accrue interest on the Notes Payable (12%) 27. Transfer Net Income / Loss to Retained Earnings.
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4 JOURNAL ENTRIES 1. 2. 3. 4. 5.
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5 JOURNAL ENTRIES 6. 7. 8. 9. 10.
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6 JOURNAL ENTRIES 11. 12. 13. 14. 15.
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7 JOURNAL ENTRIES 16. 17. 18. 19. 20.
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8 JOURNAL ENTRIES 21. 22. 23. 24. 25.
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9 JOURNAL ENTRIES 26. 27. 28. 29. 30.
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10 Cash Reference Transaction Current Balance Debit Credit Debit Credit 2,000,000,000
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11 Common Stock Reference Transaction Current Balance Debit Credit Debit Credit 500,000,000
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12 Paid in Capital Reference Transaction Current Balance Debit Credit Debit Credit 500,000,000
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13 Retained Earnings Reference Transaction Current Balance Debit Credit Debit Credit 1,000,000,000
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14 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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15 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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16 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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17 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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18 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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19 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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20 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit
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