AP$3-7$

LO$3-4$

Recording Journal Entries $($P$3-7)$

Waterfun Park, Inc., is a large regional waterpark operator in the southern United States. The following are summarized transactions similar to those that occurred in a recent year. Dollars are in thousands.

Guests at the parks paid $$641,042$ cash in admissions.

Waterfun Park paid $$49,800$ principal on long$-$term notes payable.

Waterfun Park purchased and built additional water rides and other equipment during the year, paying $$98,290$ in cash.

Guests may stay in the parks at accommodations owned by the company. During the year, accommodations revenue was $$90,194$; $$88,605$ was paid by the guests in cash and the rest was owed on account.

The primary operating expenses for the year were employee wages of $$469,416,$ with $$437,630$ paid in cash and the rest to be paid to employees in the following year.

The park sells merchandise in park stores. The cash received during the year for sales was $$401,693.$

The cost of the merchandise inventory sold during the year was $$101,057.$

Interest incurred and paid on long$-$term debt was $$171,326.$

The company purchased $$161,031$ in inventory for the park stores during the year, paying $$130,231$ in cash and owing the rest on account.

Waterfun Park paid $$13,400$ on accounts payable during the year.

Advertising costs for the parks were $$153,926$ for the year; $$143,944$ was paid in cash and the rest was owed on account.

Required:

For each of these transactions, record journal entries. Use the letter of each transaction as its reference.

AP$3-8$