Cedar Fair, L.P. (Limited Partnership) is one of the largest regional amusement park operators in the world, owning 11 amusement parks, four outdoor water parks, one indoor water park, and five hotels. The parks include Cedar Point in Ohio, Valleyfair near Minneapolis/St. Paul, Dorney Park and Wildwater Kingdom near Allentown, Pennsylvania, Worlds of Fun/Oceans of Fun in Kansas City, Great America in Santa Clara, California, and Canada’s Wonderland near Toronto, Canada, among others. The following are summarized transactions similar to those that occurred in a recent year (assume 2014). Dollars are in thousands:
a. Guests at the parks paid $596,042 cash in admissions.
b. The primary operating expenses (such as employee wages, utilities, and repairs and maintenance on buildings and equipment) for the year were $433,416, with $401,630 paid in cash and the rest on account.
c. Cedar Fair paid $47,100 principal on notes payable.
d. The parks sell food and merchandise and operate games. The cash received during the year for these combined activities was $365,693. The cost of merchandise sold during the year was $92,057.
e. Cedar Fair purchased and built additional buildings, rides, and equipment during the year, paying $90,190 in cash.
f. Guests may stay in the parks at accommodations owned by the company. During the year, accommodations revenue was $82,994; $81,855 was paid by the guests in cash and the rest was owed on account.
g. Interest incurred and paid on long-term debt was $153,326.
h. The company purchased $147,531 in food and merchandise inventory for the year, paying $119,431 in cash and owing the rest on account.
i. The selling, general, and administrative expenses, such as the president’s salary and advertising for the parks, were $140,426 for the year and were classified as operating expenses; $134,044 was paid in cash, and the rest was owed on account.
j. Cedar Fair paid $11,600 on accounts payable during the year.

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.
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 (1 for increase and 2 for decrease). If there is no cash flow effect, write none. The first transaction is provided as anexample.

  • CreatedJuly 01, 2014
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