Cedar Fair, L. P. (Limited Partnership), owns and operates four seasonal amusement parks: Cedar Point in Ohio. Valleyfair near Minneapolis/St. Paul, Dorney Park and Wildwater Kingdom near Allentow n.

Pennsylvania, and Worlds of Fun/Oceans of Fun in Kansas City. The following are summarized transactions similar to those that occurred in a recent year (assume 2003):a. Guests at the parks paid $89.664.000 cash in admissions.

b. The primary operating expenses (such as employee wages, utilities, and repairs and maintenance) for the year were $66,347,000 with $60,200,000 paid in cash and the rest on account.

c. Interest paid on long-term debt was $6,601,000.

d. The parks sell food and merchandise and operate games. The cash received during the year for these combined activities was $77.934.000.

e. The cost of products sold for cash during the year was $19.525,000. J. Cedar Fair purchased and built additional buildings, rides, and equipment during the year. paying $23,813,000 in cash.

g. The most significant assets for the company are land, buildings, rides, and equipment. Therefore, a large expense for Cedar Fair is depreciation expense (related to using these assets to generate revenues during the year). For the year, the amount was $14,473,000 (credit Accumulated Depreciation).
h. Guests may stay in the parks at accommodations owned by the company. During the year. Accommodations Revenue was $1 1,345,000; $1 1,010,000 was paid by the guests in cash and the rest was owed on account.
/'. Cedar Fair paid $2,900,000 principal on notes payable.
/'. The company purchased $19,100,000 in food and merchandise inventory for the year, paying $18,000,000 in cash and owing the rest on account.
k. The selling, general, and administrative expenses such as the president's salary and advertising for the parks, classified as operating expenses, for the year were $21,11 8,000; $19,500,000 was paid in cash and the rest was owed on account.
/. Cedar Fair paid $8,600,000 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. 2. Use the following chart to identify whether each transaction results in a cash flow effect from operating

(O), investing (I), or financing (F) activities, and indicate the direction and amount of the effect on cash ( + for increase and - for decrease). If there is no cash flow effect, write none. The first transaction is provided as an example.

Transcribed Image Text:

Transaction Operating, Investing, or Financing Fffect Direction and Amount (a) 0 of the Effect +89,664,000