Pine Fair, L.P. (Limited Partnership), is one of the largest regional amusement park operators in the world, owning 11 amusement parks, two water parks, and four hotels. The parks include Pine Point in Ohio; Valleyfair near Minneapolis/St. Paul; Dorney Park and Wildwater Kingdom near Allentown, Pennsylvania; Worlds of Fun in Kansas City; Great America in Santa Clara, California; and Canada’s Wonderland near Toronto, Canada, among several others. The following are summarized transactions similar to those that occurred in a recent year. Dollars are in thousands. Guests at the parks paid $656,042 cash in admissions. The primary operating expenses for the year were employee wages of 481,416, with $449,630 paid in cash and the rest to be paid to employees in the following year. Pine Fair paid $50,700 principal on long-term notes payable. The parks sells merchandise in park stores. The cash received during the year for sales was $413,693. The cost of the inventory sold during the year was $104,057. Pine Fair purchased and built additional rides and other equipment during the year, paying $100,990 in cash. Guests may stay in the parks at accommodations owned by the company. During the year, accommodations revenue was $92,594; $90,855 was paid by the guests in cash and the rest was owed on account. Interest incurred and paid on long-term debt was $177,326. The company purchased $165,531 in inventory for the park stores during the year, paying $133,831 in cash and owing the rest on account. Advertising costs for the parks were $158,426 for the year; $147,244 was paid in cash and the rest was owed on account. Pine Fair paid $14,000 on accounts payable during the year. Required: 1. For each of these transactions, record journal entries. Use the letter of each transaction as its reference. Note that transaction (d) will require two entries, one for revenue recognition and one for the related expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands not in dollars.)

Pine Fair, L.P. (Limited Partnership), is one of the largest regional amusement park operators in the world, owning 11 amusement parks, two water parks, and four hotels. The parks include Pine Point in Ohio; Valleyfair near Minneapolis/St. Paul; Dorney Park and Wildwater Kingdom near Allentown, Pennsylvania; Worlds of Fun in Kansas City; Great America in Santa Clara, California; and Canada’s Wonderland near Toronto, Canada, among several others. The following are summarized transactions similar to those that occurred in a recent year. Dollars are in thousands. Guests at the parks paid $656,042 cash in admissions. The primary operating expenses for the year were employee wages of 481,416, with $449,630 paid in cash and the rest to be paid to employees in the following year. Pine Fair paid $50,700 principal on long-term notes payable. The parks sells merchandise in park stores. The cash received during the year for sales was $413,693. The cost of the inventory sold during the year was $104,057. Pine Fair purchased and built additional rides and other equipment during the year, paying $100,990 in cash. Guests may stay in the parks at accommodations owned by the company. During the year, accommodations revenue was $92,594; $90,855 was paid by the guests in cash and the rest was owed on account. Interest incurred and paid on long-term debt was $177,326. The company purchased $165,531 in inventory for the park stores during the year, paying $133,831 in cash and owing the rest on account. Advertising costs for the parks were $158,426 for the year; $147,244 was paid in cash and the rest was owed on account. Pine Fair paid $14,000 on accounts payable during the year. Required: 1. For each of these transactions, record journal entries. Use the letter of each transaction as its reference. Note that transaction (d) will require two entries, one for revenue recognition and one for the related expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands not in dollars.)

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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Guests at the parks paid $656,042 cash in admissions.
The primary operating expenses for the year were employee wages of 481,416, with $449,630 paid in cash and the rest to be paid to employees in the following year.
Pine Fair paid $50,700 principal on long-term notes payable.
The parks sells merchandise in park stores. The cash received during the year for sales was $413,693. The cost of the inventory sold during the year was $104,057.
Pine Fair purchased and built additional rides and other equipment during the year, paying $100,990 in cash.
Guests may stay in the parks at accommodations owned by the company. During the year, accommodations revenue was $92,594; $90,855 was paid by the guests in cash and the rest was owed on account.
Interest incurred and paid on long-term debt was $177,326.
The company purchased $165,531 in inventory for the park stores during the year, paying $133,831 in cash and owing the rest on account.
Advertising costs for the parks were $158,426 for the year; $147,244 was paid in cash and the rest was owed on account.
Pine Fair paid $14,000 on accounts payable during the year.

Required:

1. For each of these transactions, record journal entries. Use the letter of each transaction as its reference. Note that transaction (d) will require two entries, one for revenue recognition and one for the related expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands not in dollars.)

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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