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Cedar Point is an amusement park in Sandusky, Ohio, owned by Cedar Fair Entertainment Company. Over 3.5 million people visit Cedar Point each year between May and October. It covers 364 acres and has more than 150 rides and attractions, including 16 roller coasters. Millions of transactions occur at Cedar Point each year. The following items are examples of hypothetical Cedar Point transactions: • May 1: Sell admission tickets, $100,000, cash May 3: Purchase merchandise inventory, $5,000, on account May 6: Rent lockers to guests, $500, cash May 15: Pay employees, $75,000, cash May 20: Borrow money from bank by signing a six-month note, $200,000 Questions 1. What would be the journal entry for each of the listed transactions? 2. For each transaction, explain how Cedar Point's assets, liabilities, and equity are impacted by each individual transaction

Cedar Point is an amusement park in Sandusky, Ohio, owned by Cedar Fair Entertainment Company. Over 3.5 million people visit Cedar Point each year between May and October. It covers 364 acres and has more than 150 rides and attractions, including 16 roller coasters. Millions of transactions occur at Cedar Point each year. The following items are examples of hypothetical Cedar Point transactions: • May 1: Sell admission tickets, $100,000, cash May 3: Purchase merchandise inventory, $5,000, on account May 6: Rent lockers to guests, $500, cash May 15: Pay employees, $75,000, cash May 20: Borrow money from bank by signing a six-month note, $200,000 Questions 1. What would be the journal entry for each of the listed transactions? 2. For each transaction, explain how Cedar Point's assets, liabilities, and equity are impacted by each individual transaction

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cedar Point is an amusement park in Sandusky, Ohio, owned by Cedar Fair Entertainment Company. Over 3.5 million people visit Cedar Point each year between May and October. It covers 364 acres and has more than 150 rides and attractions, including 16 roller coasters. Millions of transactions occur at Cedar Point each year. The following items are examples of hypothetical Cedar Point transactions: • May 1: Sell admission tickets, $100,000, cash May 3: Purchase merchandise inventory, $5,000, on account May 6: Rent lockers to guests, $500, cash May 15: Pay employees, $75,000, cash May 20: Borrow money from bank by signing a six-month note, $200,000 Questions 1. What would be the journal entry for each of the listed transactions? 2. For each transaction, explain how Cedar Point's assets, liabilities, and equity are impacted by each individual transaction
Transcribed Image Text:Cedar Point is an amusement park in Sandusky, Ohio, owned by Cedar Fair Entertainment Company. Over 3.5 million people visit Cedar Point each year between May and October. It covers 364 acres and has more than 150 rides and attractions, including 16 roller coasters. Millions of transactions occur at Cedar Point each year. The following items are examples of hypothetical Cedar Point transactions: • May 1: Sell admission tickets, $100,000, cash May 3: Purchase merchandise inventory, $5,000, on account May 6: Rent lockers to guests, $500, cash May 15: Pay employees, $75,000, cash May 20: Borrow money from bank by signing a six-month note, $200,000 Questions 1. What would be the journal entry for each of the listed transactions? 2. For each transaction, explain how Cedar Point's assets, liabilities, and equity are impacted by each individual transaction
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