Refer to the income statement for Carnival Corporation shown in the chapter open

Question

Refer to the income statement for Carnival Corporation shown in the chapter opener. Using the account titles reported there, prepare the journal entry for each of the following hypothetical transactions. Assume that all transactions include either a debit or a credit to Cash.

1.      Fuel is purchased for $10,000.

2.      A passenger purchases a ticket for $2,000.

3.      Salaries and wages of $4,000 are paid.

4.      A passenger pays $50 for pictures in the photo gallery.

5.      A travel agent is paid $700 in commissions.

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Explanation / Answer

1./

FUEL EXPENSES A/C................................DR $10000

   TO CASH $10000

2./

CASH A/C...............................................DR $2000

   TO TICKET REVENUE A/C $2000

3./

PAYROLL EXPENSES A/C...............................DR $4000

   TO CASH A/C $4000

4./

CASH A/C..................................................DR $50

   TO ONBOARD REVENUE A/C $50

5./

COMMISION , TRANSPOTATION & OTHER EXPENSES A/C.......................DR $700

   TO CASH A/C $700

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