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

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Unformatted text preview: 1 ACCOUNTING Exercise 6 Norwegian Cruise Line 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 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. 4 JOURNAL ENTRIES 1. 2. 3. 4. 5. 5 JOURNAL ENTRIES 6. 7. 8. 9. 10. 6 JOURNAL ENTRIES 11. 12. 13. 14. 15. 7 JOURNAL ENTRIES 16. 17. 18. 19. 20. 8 JOURNAL ENTRIES 21. 22. 23. 24. 25. 9 JOURNAL ENTRIES 26. 27. 28. 29. 30. 10 Cash Reference Transaction Current Balance Debit Credit Debit Credit 2,000,000,000 11 Common Stock Reference Transaction Current Balance Debit Credit Debit Credit 500,000,000 12 Paid in Capital Reference Transaction Current Balance Debit Credit Debit Credit 500,000,000 13 Retained Earnings Reference Transaction Current Balance Debit Credit Debit Credit 1,000,000,000 14 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 15 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 16 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 17 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 18 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 19 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 20 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 21 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 22 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 23 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 24 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 25 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 26 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 27 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 28 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 29 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 30 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 31 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 32 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 33 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 34 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 35 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 36 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 37 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 38 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 39 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 40 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 41 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 42 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 43 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 44 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 45 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 46 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 47 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 48 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 49 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 50 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 51 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 52 _________________ A/C Reference Transaction Current Balance Debit Credit Debit Credit 53 TRIAL BALANCEpage 1 Account Debit Credit 54 TRIAL BALANCEpage 2 Account Debit Credit 55...
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Excercise 6 - 1 ACCOUNTING Exercise 6 Norwegian Cruise Line...

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