Questions 1. What would be the journal entry for each of the listed transactions? 2. For each transaction, how would Cedar Fair's assets, liabilities. and equity would be impacted by each individual transaction? trangaction how would Cedar Fair's Financial Statements be impacted.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Answer questions 1 through 4
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 ofdest is Lake Compounce in
Connecticut.)
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, $200.00Ọ
Questions
1. What would be the journal entry for each of the listed transactions?
2. For each transaction, how would Cedar Fair's assets, liabilities, and equity would be impacted by each individual transaction?
3. For each transaction, how would Cedar Fair's Financial Statements be impacted.
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. Cedar Point is the second oldest continuously operating amusement park in the United States (the ofdest is Lake Compounce in Connecticut.) 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, $200.00Ọ Questions 1. What would be the journal entry for each of the listed transactions? 2. For each transaction, how would Cedar Fair's assets, liabilities, and equity would be impacted by each individual transaction? 3. For each transaction, how would Cedar Fair's Financial Statements be impacted.
Expert Solution
Step 1

As per double entry system of accounting, for every transaction atleast two accounts should be affected. It means atleast one account should be debited and one account should be credited.

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