How would Cedar Point record various transactions? Original blog posting (December 29, 2016)

Cedar Point Amusement park in Sandusky, OH Over 3.5 million visitors per year 364 acres with over 150 rides and 16 roller coasters 2nd oldest amusement park in U.S

Cedar Point Hypothetical 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

Question 1 See each of the following slides for the transaction and the related journal entry.

May 1: Sell admission tickets, $100,000, cash

May 1: Sell admission tickets, $100,000, cash JOURNAL Date Accounts and explanation Debit Credit May 1 Cash 100,000 Sales revenue 100,000 Record sales revenue from admissions

May 3: Purchase merchandise inventory, $5,000, on account

May 3: Purchase merchandise inventory, $5,000, on account JOURNAL Date Accounts and explanation Debit Credit May 3 Merchandise inventory 5,000 Accounts payable 5,000 Purchase merchandise inventory

May 6: Rent lockers to guests, $500, cash

May 6: Rent lockers to guests, $500, cash JOURNAL Date Accounts and explanation Debit Credit May 6 Cash 500 Sales revenue 500 Record sales revenue from locker rental

May 15: Pay employees, $75,000, cash

May 15: Pay employees, $75,000, cash JOURNAL Date Accounts and explanation Debit Credit May 15 Salaries expense 75,000 Cash 75,000 Record payroll expenses

May 20: Borrow money, $200,000

May 20: Borrow money, $200,000 JOURNAL Date Accounts and explanation Debit Credit May 20 Cash 200,000 Loans payable 200,000 Borrow funds

Question 2 For each transaction, how Cedar Fair’s assets, liabilities, and equity would be impacted by each individual transaction?

Question Recap What would be the journal entry for each of the listed transactions? For each transaction, how Cedar Fair’s assets, liabilities, and equity would be impacted by each individual transaction?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/ Questions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu