Question

ps:/ Saved The following information applies to the questions displayed below] Lakewood Tennis Club (LTC) operates an indoor tennis facility. The company charges a $165 annual membership fee plus a member rental rate of $15 per court per hour. LTC's fiscal year-end is August 31. LTC's revenue recognition policy is described in its financial statement notes as follows: Revenue Recognition-LTC generates revenue from two sources. Annual membership fees arise from providing 12 months of services to members, so they are reported as membership revenue each month as these services are provided Court rental fees are generated by renting courts each day, so they are reported as service revenue when courts are used by members. On August 31, 8 new members joined and paid the annual membership fee in cash. The memberships do not begin until September 1. For the week ended September 11 LTC provided 215 court-hours of rental services for members and collected its fees in cash. On September 13. LTC purchased and received tennis balls and other supplies. The regular retail price was $290, but LTC negotiated a lower amount ($280) that is to be paid in October. On September 15, LTC paid $2,300 to employees for the hours they worked from September 1 -15. For the two weeks ended September 25, LTC courts were used for a provided 362 court-hours for members and collected member's birthday party. LTC expects the member to pay the special event On September 27, LTC wrote a $380 check to an advertising company to prepare advertising flyers that will be inserted in booking fee of $215 on Saturday, October 2 ober 1. On September 29, LTC received $215 on account for the members birthday party that ptember 26. On September 30, LTC submitted its electricity and natural gas meter readings online was held on Se According to the suppliers' Websites, the total charges for the month through a preauthorized online payment. will be $330. This amount will be paid on October f7 s preliminary net income for September 3-a. Using your answer to requirement 1 or 2, calculate LTC'

Answer 1