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4 March, 07:38

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?

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  1. 4 March, 10:11
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    Following are the transactions and their effects on Cedar's balance sheet

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

    Transaction:

    Sell admission ticket - Debit

    Cash - Credit

    Impact

    the sell tickets shall increase the expense and decreasing the reserves and cash will be credited resulting in decreasing the current assets,

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

    Transaction:

    Purchase Inventory - Debit

    Accounts payable - Credit

    Impact

    both will result in increasing in current assets and current liabilities.

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

    Transaction:

    Rent lockers - Debit

    Cash - Credit

    Impact

    the rent lockers shall increase the expense and decreasing the reserves and cash will be credited resulting in decreasing the current assets,

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

    Transaction:

    Pay employee - Debit

    Cash - Credit

    Impact

    the Pay employee shall increase the expense and decreasing the reserves and cash will be credited resulting in decreasing the current assets,

    May 20: Borrow money from bank by signing a six-month note, $200,000

    Transaction:

    Cash - Debit

    Note Payable - Credit

    Impact

    both will result in increasing in current assets and current liabilities.
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