Required information P3-7 (Algo) Recording Journal Entries and Identifying Cash Flow Effects LO3-4, 3-7 [The following information applies to the questions displayed below.] 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. a. Guests at the parks paid $621,042 cash in admissions. b. The primary operating expenses for the year were employee wages of 453,416, with $421,630 paid in cash and the rest to be paid to employees in the following year. c. Pine Fair paid $48,600 principal on long-term notes payable. d. The parks sells merchandise in park stores. The cash received during the year for sales was $385,693. The cost of the inventory sold during the year was $97,057. e. Pine Fair purchased and built additional rides and other equipment during the year, paying $94,690 in cash. f. Guests may stay in the parks at accommodations owned by the company. During the year, accommodations revenue was $86,994; $85,605 was paid by the guests in cash and the rest was owed on account. g. Interest incurred and paid on long-term debt was $163,326. h. The company purchased $155,031 in inventory for the park stores during the year, paying $125,431 in cash and owing the rest on account. i. Advertising costs for the parks were $147,926 for the year; $139,544 was paid in cash and the rest was owed on account. j. Pine Fair paid $12,600 on accounts payable during the year. P3-7 Part 1