Exercise 7 - ACCOUNTING Exercise 7 Carnival Cruise Line 1...

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Unformatted text preview: ACCOUNTING Exercise 7 Carnival Cruise Line 1 ECONOMIC EVENTS 2 1. Construct an $1,600,000,000 cruise ship, borrow money on a Note Payable to finance the construction. 2. Pay $20,000,000 for specialty restaurant food. 3. Pay $16,000,000 for retail store merchandise. 4. Pay $4,000,000 for ship supplies. 5. Pay $4,000,000 for a two year insurance policy. 6. Collect $500,000,000 from passengers for cabin revenue. 7. Collect $60,000,000 from passengers for meals at ship restaurants. 8. Record $20,000,000 for restaurant Cost of Sales. 9. Collect $40,000,000 from passengers for purchases at ship retail shops. 10. Record $10,000,000 for retail shop Cost of Sales 11. Collect $20,000,000 from passengers at ship casinos. 12. Record $2,000,000 for ship casino pay outs to winning passengers. 13. Collect $10,000,000 from passengers for island excursions. 14. Pay $6,000,000 to island excursion operators for their share. 15. Pay $4,000,000 to islands for terminal fees ECONOMIC EVENTS 3 16. Pay $4,000,000 to register the company trademark. 17. Pay $10,000,000 for entertainment costs. 18. Pay $100,000,000 for salaries. 19. Pay $2,000,000 for ship maintenance. 20. Pay $60,000,000 for ship fuel. 21. Record use of $2,000,000 of ship supplies. 22. Declare a $2,000,000 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). 26. End of year. Accrue interest on the Notes Payable (12%) 27. Transfer Net Income / Loss to Retained Earnings. JOURNAL ENTRIES 1. 2. 3. 4. 5. 4 JOURNAL ENTRIES 6. 7. 8. 9. 10. 5 JOURNAL ENTRIES 11. 12. 13. 14. 15. 6 JOURNAL ENTRIES 16. 17. 18. 19. 20. 7 JOURNAL ENTRIES 21. 22. 23. 24. 25. 8 JOURNAL ENTRIES 26. 27. 28. 29. 30. 9 10 Cash Reference Transaction Debit Current Balance Credit Debit 4,000,000,000 Credit 11 Common Stock Reference Transaction Debit Current Balance Credit Debit Credit 1,000,000,000 12 Paid in Capital Reference Transaction Debit Current Balance Credit Debit Credit 1,000,000,000 Retained Earnings Reference Transaction Debit 13 Current Balance Credit Debit Credit 2,000,000,000 _________________ A/C Reference Transaction Debit 14 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 15 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 16 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 17 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 18 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 19 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 20 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 21 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 22 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 23 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 24 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 25 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 26 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 27 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 28 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 29 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 30 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 31 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 32 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 33 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 34 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 35 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 36 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 37 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 38 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 39 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 40 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 41 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 42 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 43 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 44 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 45 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 46 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 47 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 48 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 49 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 50 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 51 Current Balance Credit Debit Credit _________________ A/C Reference Transaction Debit 52 Current Balance Credit Debit Credit TRIAL BALANCE…page 1 53 Account Credit Debit TRIAL BALANCE…page 2 54 Account Credit Debit BALANCE SHEET Current Assets Current Liabilities Long Term Assets Long Term Liabilities Stockholders Equity Total Total 55 INCOME STATEMENT…..page 1 56 INCOME STATEMENT…..page 2 Net Income (Loss) 57 JOURNAL ENTRY ANSWERS 1. Dr Cruise Ship 1,600,000,000 Cr Notes Payable 1,600,000,000 2. Dr Restaurant Food Inventory 20,000,000 Cr Cash 20,000,000 3. Dr Retail Store Inventory 16,000,000 Cr Cash 16,000,000 4. Dr Supplies 4,000,000 Cr Cash 4,000,000 5. Dr Prepaid Insurance 4,000,000 Cr Cash 4,000,000 58 JOURNAL ENTRY ANSWERS 6. Dr Cash 500,000,000 Cr Cabin Revenue 500,000,000 7. Dr Cash 60,000,000 Dr Restaurant Sales 60,000,000 8. Dr Restaurant Cost of Sales 20,000,000 Cr Restaurant Food Inventory 20,000,000 9. Dr Cash 40,000,000 Cr Retail Store Sales 40,000,000 10. Dr Retail Store Cost of Sales 10,000,000 Cr Retail Store Inventory 10,000,000 59 JOURNAL ENTRY ANSWERS 11. Dr Cash 20,000,000 Cr Casino Revenue 20,000,000 12. Dr Casino Expense 2,000,000 Cr Cash 2,000,000 13. Dr Cash 10,000,000 Cr Excursion Revenue 10,000,000 14. Dr Excursion Expense 6,000,000 Cr Cash 6,000,000 15. Dr Terminal Fee Expense 4,000,000 Cr Cash 4,000,000 60 JOURNAL ENTRY ANSWERS 16. Dr Trademark 4,000,000 Cr Cash 4,000,000 17. Dr Entertainment Expense 10,000,000 Cr Cash 10,000,000 18. Dr Salaries Expense 100,000,000 Cr Cash 100,000,000 19. Dr Maintenance Expense 2,000,000 Cr Cash 2,000,000 20. Dr Fuel Expense 60,000,000 Cr Cash 60,000,000 61 JOURNAL ENTRY ANSWERS 62 21. Dr Supplies Expense 2,000,000 Cr Supplies 2,000,000 22. Dr Retained Earnings 2,000,000 Cr Dividends Payable 2,000,000 23. Dr Insurance Expense 2,000,000 Cr Prepaid Insurance 2,000,000 24. Dr Amortization Expense (2,000,000 / 20 years) 200,000 Cr Accumulated Amortization 200,000 25. Dr Depreciation Expense (1,600,000,000 / 40 years) 40,000,000 Cr Accumulated Depreciation 40,000,000 JOURNAL ENTRY ANSWERS 63 26. Dr Interest Expense (1,600,000,000 x 12%) 192,000,000 Cr Interest payable 192,000,000 27. Dr Net Income 179,800,000 Cr Retained Earnings 179,800,000 64 Cash Reference Transaction Debit Current Balance Credit Debit 4,000,000,000 GJ2 20,000,000 3,980,000,000 GJ3 16,000,000 3,964,000,000 GJ4 4,000,000 3,960,000,000 GJ5 4,000,000 3,956,000,000 GJ6 500,000,000 4,456,000,000 GJ7 60,000,000 4,516,000,000 GJ9 40,000,000 4,556,000,000 GJ11 20,000,000 4,576,000,000 GJ12 GJ13 2,000,000 10,000,000 4,574,000,000 4,584,000,000 GJ14 6,000,000 4,578,000,000 GJ15 4,000,000 4,574,000,000 GJ16 4,000,000 4,570,000,000 GJ17 10,000,000 4,560,000,000 GJ18 100,000,000 4,460,000,000 GJ19 2,000,000 4,458,000,000 GJ20 60,000,000 4,398,000,000 Credit 65 Common Stock Reference Transaction Debit Current Balance Credit Debit Credit 1,000,000,000 66 Paid in Capital Reference Transaction Debit Current Balance Credit Debit Credit 1,000,000,000 Retained Earnings Reference Transaction Debit 67 Current Balance Credit Debit Credit 2,000,000,000 GJ22 GJ27 2,000,000 1,998,000,000 179,800,000 2,177,800,000 68 Cruise Ship Reference Transaction Debit GJ1 1,600,000,000 Current Balance Credit Debit 1,600,000,000 Credit 69 Notes Payable Reference Transaction Debit GJ1 Current Balance Credit 1,600,000,000 Debit Credit 1,600,000,000 70 Food Inventory Reference Transaction Debit GJ2 GJ8 Current Balance Credit 20,000,000 Debit Credit 20,000,000 20,000,000 0 71 Store Inventory Reference Transaction Debit GJ3 GJ10 Current Balance Credit 16,000,000 Debit 16,000,000 10,000,000 6,000,000 Credit 72 Supplies Reference Transaction Debit GJ4 GJ21 Current Balance Credit 4,000,000 Debit 4,000,000 2,000,000 2,000,000 Credit 73 Prepaid Insurance Reference Transaction Debit GJ5 GJ23 Current Balance Credit 4,000,000 Debit 4,000,000 2,000,000 2,000,000 Credit 74 Cabin Revenue Reference Transaction Debit GJ6 Current Balance Credit 500,000,000 Debit Credit 500,000,000 75 Restaurant Sales Reference Transaction Debit GJ7 Current Balance Credit 60,000,000 Debit Credit 60,000,000 Restaurant Cost of Sales Reference Transaction Debit GJ8 20,000,000 76 Current Balance Credit Debit 20,000,000 Credit 77 Store Sales Reference Transaction Debit GJ9 Current Balance Credit 40,000,000 Debit Credit 40,000,000 Store Cost of Sales Reference Transaction Debit GJ10 10,000,000 78 Current Balance Credit Debit 10,000,000 Credit Casino Revenue Reference Transaction Debit GJ11 79 Current Balance Credit 20,000,000 Debit Credit 20,000,000 Casino Expense Reference Transaction Debit GJ12 2,000,000 80 Current Balance Credit Debit 2,000,000 Credit Excursion Revenue Reference Transaction Debit GJ13 81 Current Balance Credit 10,000,000 Debit Credit 10,000,000 Excursion Expense Reference Transaction Debit GJ14 6,000,000 82 Current Balance Credit Debit 6,000,000 Credit Terminal Fee Expense Reference Transaction Debit GJ15 4,000,000 83 Current Balance Credit Debit 4,000,000 Credit 84 Trademark Reference Transaction Debit GJ16 4,000,000 Current Balance Credit Debit 4,000,000 Credit Entertainment Expense Reference Transaction Debit GJ17 10,000,000 85 Current Balance Credit Debit 10,000,000 Credit Salaries Expense Reference Transaction Debit GJ18 100,000,000 86 Current Balance Credit Debit 100,000,000 Credit Maintenance Expense Reference Transaction Debit GJ19 2,000,000 87 Current Balance Credit Debit 2,000,000 Credit 88 Fuel Expense Reference Transaction Debit GJ20 60,000,000 Current Balance Credit Debit 60,000,000 Credit Supplies Expense Reference Transaction Debit GJ21 2,000,000 89 Current Balance Credit Debit 2,000,000 Credit Dividends Payable Reference Transaction Debit GJ22 90 Current Balance Credit 2,000,000 Debit Credit 2,000,000 Insurance Expense Reference Transaction Debit GJ23 2,000,000 91 Current Balance Credit Debit 2,000,000 Credit Amortization Expense Reference Transaction Debit GJ24 200,000 92 Current Balance Credit Debit 200,000 Credit Accumulated Amortization Reference Transaction Debit GJ24 93 Current Balance Credit 200,000 Debit Credit 200,000 Depreciation Expense Reference Transaction Debit GJ25 40,000,000 94 Current Balance Credit Debit 40,000,000 Credit Accumulated Depreciation Reference Transaction Debit GJ25 95 Current Balance Credit 40,000,000 Debit Credit 40,000,000 Interest Expense Reference Transaction Debit GJ26 192,000,000 96 Current Balance Credit Debit 192,000,000 Credit Interest Payable Reference Transaction Debit GJ26 97 Current Balance Credit 192,000,000 Debit Credit 192,000,000 98 Net Income Reference Transaction Debit GJ27 179,800,000 Current Balance Credit Debit 179,800,000 Credit TRIAL BALANCE…page 1 99 Account Credit Cash Debit 4,398,000,000 Common Stock 1,000,000,000 Paid in Capital 1,000,000,000 Retained Earnings 2,177,800,000 Cruise Ship 1,600,000,000 Notes Payable 1,600,000,000 Food Inventory 0 Store Inventory 6,000,000 Supplies 2,000,000 Prepaid Insurance 2,000,000 Cabin Revenue 500,000,000 Restaurant Sales 60,000,000 Restaurant Cost of Sales 20,000,000 Store Sales Store Cost of Sales 40,000,000 10,000,000 Casino Revenue Casino Expense 20,000,000 2,000,000 Excursion Revenue Excursion Expense 10,000,000 6,000,000 TRIAL BALANCE…page 2 Account Debit Terminal Fee Expense 4,000,000 Entertainment Expense 10,000,000 Salaries Expense Credit 4,000,000 Trademark 100 100,000,000 Maintenance Expense 2,000,000 Fuel Expense 60,000,000 Supplies Expense 2,000,000 Dividends Payable Insurance Expense Amortization Expense 2,000,000 2,000,000 200,000 Accumulated Amortization Depreciation Expense 200,000 40,000,000 Accumulated Depreciation Interest Expense 40,000,000 192,000,000 Interest Payable Net Income Total 192,000,000 179,800,000 6,642,000,000 6,642,000,000 BALANCE SHEET Current Assets Cash 101 Current Liabilities 4,398,000,000 Store Inventory 6,000,000 Supplies 2,000,000 Long Term Assets Cruise Ship Accumulated Depreciation Net Book Value Dividend Payable 192,000,000 2,000,000 Prepaid Insurance Interest Payable 2,000,000 Long Term Liabilities 1,600,000,000 Notes Payable 1,600,000,000 (40,000,000) 1,560,000,000 Stockholders Equity Trademark 4,000,000 Common Stock 1,000,000,000 Accumulated Amortization (200,000) Paid in Capital 1,000,000,000 Net Book Value 3,800,000 Retained Earnings 2,177,800,000 Total 5,971,800,000 Total 5,971,800,000 INCOME STATEMENT….page 1 Revenue 102 Cabin Revenue 500,000,000 Casino Revenue 20,000,000 Excursion Revenue 10,000,000 Restaurant Sales 60,000,000 Cost of Sales 20,000,000 Gross Profit 40,000,000 Store Sales 40,000,000 Cost of Sales 10,000,000 Gross Profit 30,000,000 Total Revenue & Gross Profit 600,000,000 INCOME STATEMENT…..page 2 Expense 103 Casino Expense 2,000,000 Excursion Expense 6,000,000 Terminal Fee Expense 4,000,000 Entertainment Expense 10,000,000 Salaries Expense 100,000,000 Maintenance Expense 2,000,000 Fuel expense 60,000,000 Supplies Expense 2,000,000 Insurance Expense 2,000,000 Amortization Expense 200,000 Depreciation Expense 40,000,000 Interest Expense 192,000,000 Net Income (Loss) 179,800,000 104 15 Cruise ship 0% 0% Ex pe ns e t 2. Asset Expense As se 1. 105 15 Specialty restaurant food 0% 0% Ex pe ns e t 2. Asset Expense As se 1. 106 15 Retail store merchandise 0% 0% Ex pe ns e t 2. Asset Expense As se 1. 107 15 Ship supplies 0% 0% Ex pe ns e t 2. Asset Expense As se 1. 108 15 Casino payouts 0% 0% Ex pe ns e t 2. Asset Expense As se 1. 109 15 Operator share of excursion revenue 0% 0% Ex pe ns e t 2. Asset Expense As se 1. 110 15 Island terminal fees 0% 0% Ex pe ns e t 2. Asset Expense As se 1. 111 15 Ship maintenance 0% 0% Ex pe ns e t 2. Asset Expense As se 1. 112 1. Construct an $1,600,000,000 cruise ship, borrow money on a Note Payable 0% hi p eS Cr ui s Dr Pa ya b. .. ... 0% No te s 2. Dr Notes Payable 1,600,000,000 Cr Cruise Ship 1,600,000,000 Dr Cruise Ship 1,600,000,000 Cr Notes Payable 1,600,000,000 Dr 15 1. 113 2. Pay $20,000,000 for specialty restaurant food ... h2 0,0 00 .. nt. Ca s Dr Fo o dI 0,0 Dr h2 Ca s nv e 00 ... . s.. xp en Dr 4. 0% 0% 0% 0% dE 3. Fo o 2. Dr Food Expense 20,000,000 Cr Cash 20,000,000 Dr Cash 20,000,000 Cr Food Expense 20,000,000 Dr Food Inventory 20,000,000 Cr Cash 20,000,000 Dr Cash 20,000,000 Cr Food Inventory 20,000,000 Dr 15 1. 114 3. Pay $16,000,000 for retail store merchandise ... ... 6,0 h1 Ca s Dr St or eI nv 00 en ... 6,0 00 h1 Ca s Dr ... pe n Ex 4. 0% 0% 0% 0% Dr 3. St or e 2. Dr Store Expense 16,000,000 Cr Cash 16,000,000 Dr Cash 16,000,000 Cr Store Expense 16,000,000 Dr Store Inventory 16,000,000 Cr Cash 16,000,000 Dr Cash 16,000,000 Cr Store Inventory 16,000,000 Dr 15 1. 115 4. Pay $4,000,000 for ship supplies ,00 Dr Ca s h4 pli Su p 0, . .. ,... es 4 0, . .. ,00 Dr h4 Ca s es Ex ... Dr 4. 0% 0% 0% 0% pli 3. Su p 2. Dr Supplies Expense 4,000,000 Cr Cash 4,000,000 Dr Cash 4,000,000 Cr Supplies Expense 4,000,000 Dr Supplies 4,000,000 Cr Cash 4,000,000 Dr Cash 4,000,000 Cr Supplies 4,000,000 Dr 15 1. 116 5. Pay $4,000,000 for a two year insurance policy h4 ,00 0, . .. ... Ca s Dr Dr Pr e h4 pa id Ins 0, . .. ,00 E.. . Ca s 4. 0% 0% 0% 0% Dr 3. Ins ur an ce 2. Dr Insurance Expense 4,000,000 Cr Cash 4,000,000 Dr Cash 4,000,000 Cr Insurance Expense 4,000,000 Dr Prepaid Insurance 4,000,000 Cr Cash 4,000,000 Dr Cash 4,000,000 Cr Prepaid Insurance 4,000,000 Dr 15 1. 117 6. Collect $500,000,000 from passengers for cabin revenue 0% Dr Ca b in h5 00 Re v en ... ,00 ... 0% Ca s 2. Dr Cash 500,000,000 Cr Cabin Revenue 500,000,000 Dr Cabin Revenue 500,000,000 Cr Cash 500,000,000 Dr 15 1. 118 7. Collect $60,000,000 from passengers for meals at ship restaurants 0% s. ale dS Fo o Dr h6 0,0 00 ... .. 0% Ca s 2. Dr Cash 60,000,000 Cr Food Sales 60,000,000 Dr Food Sales 60,000,000 Cr Cash 60,000,000 Dr 15 1. 119 8. Record $20,000,000 restaurant Cost of Sales 0% Co s Dr dI nv e to fS nt. al. .. .. 0% Fo o 2. Dr Food Inventory 20,000,000 Cr Cost of Sales 20,000,000 Dr Cost of Sales 20,000,000 Cr Food Inventory 20,000,000 Dr 15 1. 120 9. Collect $40,000,000 from passengers for purchases at retail stores 0% ale s.. eS St or Dr h4 0,0 00 ... . 0% Ca s 2. Dr Cash 40,000,000 Cr Store Sales 40,000,000 Dr Store Sales 40,000,000 Cr Cash 40,000,000 Dr 15 1. 121 10. Record $10,000,000 retail store Cost of Sales 0% to fS Co s Dr eI nv en al. ... .. 0% St or 2. Dr Store Inventory 10,000,000 Cr Cost of Sales 10,000,000 Dr Cost of Sales 10,000,000 Cr Store Inventory 10,000,000 Dr 15 1. 122 11. Collect $20,000,000 from passengers at ship casinos 0% Dr Ca s ino h2 Re ve 0,0 00 ... ... 0% Ca s 2. Dr Cash 20,000,000 Cr Casino Revenue 20,000,000 Dr Casino Revenue 20,000,000 Cr Cash 20,000,000 Dr 15 1. 123 12. Record $2,000,000 for ship casino pay outs to winning passengers 0% Dr Ca s ino h2 Ex pe ... ,00 0 ,. .. 0% Ca s 2. Dr Cash 2,000,000 Cr Casino Expense 2,000,000 Dr Casino Expense 2,000,000 Cr Cash 2,000,000 Dr 15 1. 124 13. Collect $10,000,000 from customers for island excursions. 0% nR Ex cu rs io Dr h1 0,0 00 ... ... 0% Ca s 2. Dr Cash 10,000,000 Cr Excursion Revenue 10,000,000 Dr Excursion Revenue 10,000,000 Cr Cash 10,000,000 Dr 15 1. 125 14. Pay $6,000,000 to island excursion operators for their share. 0% sio Ex cu r Dr h6 ,00 nE ... 0 ,. .. 0% Ca s 2. Dr Cash 6,000,000 Cr Excursion Expense 6,000,000 Dr Excursion Expense 6,000,000 Cr Cash 6,000,000 Dr 15 1. 126 15. Pay $4,000,000 to islands for terminal fees Dr Te r h4 mi na lF e. . . 0% ,00 0 ,. .. 0% Ca s 2. Dr Cash 4,000,000 Cr Terminal Fee Expense 4,000,000 Dr Terminal Fee Expense 4,000,000 Cr Cash 4,000,000 Dr 15 1. 127 16. Pay $4,000,000 to register the company trademark Dr ... k4 de ma r Tr a h4 ,00 0 ,. .. ... kE Ca s Tr a Dr de ma r ,00 0 ,. .. 0% 0% 0% 0% Dr 4. h4 3. Ca s 2. Dr Cash 4,000,000 Cr Trademark Expense 4,000,000 Dr Trademark Expense 4,000,000 Cr Cash 4,000,000 Dr Cash 4,000,000 Cr Trademark 4,000,000 Dr Trademark 4,000,000 Cr Cash 4,000,000 Dr 15 1. 128 17. Pay $20,000,000 for entertainment costs tai n En ter Dr h2 me ... 0% 0,0 00 ... 0% Ca s 2. Dr Cash 20,000,000 Cr Entertainment Expense 20,000,000 Dr Entertainment Expense 20,000,000 Cr Cash 20,000,000 Dr 15 1. 129 18. Pay $100,000,000 for salaries 0% Sa la Dr h1 00 rie s Ex ,00 ... ... 0% Ca s 2. Dr Cash 100,000,000 Cr Salaries Expense 100,000,000 Dr Salaries Expense 100,000,000 Cr Cash 100,000,000 Dr 15 1. 130 19. Pay $2,000,000 for ship maintenance 0% Dr Ma in ten h2 an ce ... ,00 0 ,. .. 0% Ca s 2. Dr Cash 2,000,000 Cr Maintenance Expense 2,000,000 Dr Maintenance Expense 2,000,000 Cr Cash 2,000,000 Dr 15 1. 131 20. Pay $60,000,000 for ship fuel 0% xp en Fu el E Dr h6 0,0 00 s.. . ... 0% Ca s 2. Dr Cash 60,000,000 Cr Fuel Expense 60,000,000 Dr Fuel Expense 60,000,000 Cr Cash 60,000,000 Dr 15 1. 132 21. Record use of $2,000,000 of ship supplies 0% Dr Su p pli pli es 2 es Ex . .. ,... 0% Su p 2. Dr Supplies 2,000,000 Cr Supplies Expense 2,000,000 Dr Supplies Expense 2,000,000 Cr Supplies 2,000,000 Dr 15 1. 133 22. Declare a $2,000,000 dividend Re ta in ed Ea ... Pa ... nd Dr Di vid e Re ta in ed Ea ... Dr Ex ... nd 4. 0% 0% 0% 0% Dr 3. Di vid e 2. Dr Dividend Expense 2,000,000 Cr Retained Earnings 2,000,000 Dr Retained Earnings 2,000,000 Cr Dividend Expense 2,000,000 Dr Dividend Payable 2,000,000 Cr Retained Earnings 2,000,000 Dr Retained Earnings 2,000,000 Cr Dividend Payable 2,000,000 Dr 15 1. 134 23. Record use of first year of insurance 4,000,000 / 2 years = 2,000,000 0% Dr Pr ep aid Ins E.. . ... 0% Ins ur an ce 2. Dr Insurance Expense 2,000,000 Cr Prepaid Insurance 2,000,000 Dr Prepaid Insurance 2,000,000 Cr Insurance Expense 2,000,000 Dr 15 1. 135 24. Record trademark amortization (4,000,000 / 20 years = 200,000) 0% or tiz ati Am Dr um ula ted o.. ... . 0% Ac c 2. Dr Accumulated Amortization 200,000 Cr Amortization Expense 200,000 Dr Amortization Expense 200,000 Cr Accumulated Amortization 200,000 Dr 15 1. 136 25. Record ship depreciation (1,600,000,000 / 40 years = 40,000,000) 0% cia re De p Dr um ula ted tio ... ... 0% Ac c 2. Dr Accumulated Depreciation 40,000,000 Cr Depreciation Expense 40,000,000 Dr Depreciation Expense 40,000,000 Cr Accumulated Depreciation 40,000,000 Dr 15 1. 137 26. Record interest on the Note Payable….. 1,600,000,000 x 12% = 192,000,000 Dr Int ere st Pa ... 0% Ex ... 0% st 2. Int ere 15 Dr Interest Expense 192,000,000 Cr Interest Payable 192,000,000 Dr Interest Payable 192,000,000 Cr Interest Expense 192,000,000 Dr 1. 138 27. Record net income of 179,800,000 0% Inc om e. ed Ea ... .. 0% Dr Ne t in 2. Re ta 15 Dr Retained Earnings 179,800,000 Cr Net Income 179,800,000 Dr Net Income 179,800,000 Cr Retained Earnings 179,800,000 Dr 1. 139 QUEEN MARY II 140 QUEEN MARY II 141 BAD WORKPLACE 142 FIELD OF DREAMS 143 ...
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