(Learning Objectives 1, 2, 4: Identify transactions, analyze impact on accountingequation, journalize transactions) Cedar Point is an amusement park in Sandusky, Ohio,owned by Cedar Fair Entertainment Company. Over 3.5 million people visit Cedar Pointeach year between May and October. It covers 364 acres and has more than 150 rides andattractions, including 16 roller coasters. Cedar Point is the second oldest continuously operatingamusement park in the United States (the oldest is Lake Compounce in Connecticut). Millionsof events occur at Cedar Point each year. The following items are possible events:■ May 1: Sell admission tickets, $150,000, cash■ May 3: Purchase merchandise inventory, $9,000, on account■ May 6: Rent lockers to guests, $700, cash■ May 8: Sign a letter of intent to switch electric suppliers starting in June■ May 15: Pay employees, $92,000, cash■ May 18: Make an offer of employment for a new position in the Merchandise & Games office■ May 20: Borrow money from bank by signing a six-month note, $400,000Requirements1. What criteria does an event have to meet to qualify as a financial transaction? Identifywhich of the listed events are financial transactions.2. Journalize each of the transactions.3. Indicate how the company’s assets, liabilities, and equity would be impacted by eachtransaction.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

(Learning Objectives 1, 2, 4: Identify transactions, analyze impact on accounting
equation, journalize transactions) 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. Cedar Point is the second oldest continuously operating
amusement park in the United States (the oldest is Lake Compounce in Connecticut). Millions
of events occur at Cedar Point each year. The following items are possible events:
■ May 1: Sell admission tickets, $150,000, cash
■ May 3: Purchase merchandise inventory, $9,000, on account
■ May 6: Rent lockers to guests, $700, cash
■ May 8: Sign a letter of intent to switch electric suppliers starting in June
■ May 15: Pay employees, $92,000, cash
■ May 18: Make an offer of employment for a new position in the Merchandise & Games office
■ May 20: Borrow money from bank by signing a six-month note, $400,000
Requirements
1. What criteria does an event have to meet to qualify as a financial transaction? Identify
which of the listed events are financial transactions.
2. Journalize each of the transactions.
3. Indicate how the company’s assets, liabilities, and equity would be impacted by each
transaction.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Accounting for Property, Plant and Equipment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education