Accounting Help!!

mod_01_assignment_template.xlsx

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M1 Assignment part 1

Module 1 Assignment Part 1:

At the beginning of the year, Fun Ships cruise line purchased a cruise ship at a cost of $55 million. Fun Ships expects the ship to remain useful for 10 years (1,000,000 miles) and to have a residual value of $5 million. Fun Ships puts 80,000 miles on the ship the first year and 115,000 miles the second year. Compute Fun Ships' first and second year depreciation on the cruise ship using the following methods:

1. Straight-line

2. Units-of-production

3. Double declining balance

Requirements:

Straight-Line

years =

per year.

Fun Ships' depreciation on the cruiseship is

for year one.

Fun Ships' depreciation on the cruiseship is

for year two.

Units-of-production

miles =

per mile.

Funships' depreciation in year one is

miles =

Funships' depreciation in year two is

miles =

Double declining balance

Depreciation rate = 1 /

x 2 =

Depreciation year one:

Book value

Rate

Depreciation

Yr 1

Yr 2

Funships' depreciation in year one is

Funships' depreciation in year two is

M1 Assignment part 2

Module 1 Assignment Part 2:
Fun Ship's decided to discard its ship at the end of 4 years. When its cost was $55 million and it had accumulated depreciation of $20 million. Record the disposition of the ship under the following independent situations:
1	Fun Ship's sold the ship for $37 million.
2	Fun Ship's discarded the equipment at a cost of $10 million.
3	Fun Ship's traded in the ship for a new similar ship with a list price of $120 million. Fun Ship's was given $15 million as a trade-in allowance and paid cash for the balance.
4	Fun Ship's traded in the asset for a new similar asset with a list price of $200 million. Fun Ship's was given a trade-in allowance of $50 miullion and signed a note payable for the remainder.
1	Fun Ship's sold the ship for $37 million.
	Description	Debit	Credit
2	Fun Ship's discarded the equipment at a cost of $10 million.
	Description	Debit	Credit
3	Fun Ship's traded in the ship for a new similar ship with a list price of $120 million. Fun Ship'swas given $15 million as a trade-in allowance and paid cash for the balance.
	Description	Debit	Credit
4	Fun Ship's traded in the asset for a new similar asset with a list price of $200 million. Fun Ship's was given a trade-in allowance of $50 million and signed a note payable for the remainder.
	Description	Debit	Credit