Question

mework Saved Help Save & Ext Chec Required information (The following information applies to the questions displayed below.) Lakewood Tennis Club (LTC) operates an indoor tennis facility. The company charges a $150 annual membership fee plus a member rental rate of $20 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, 10 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 190 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 $220, but LTC negotiated a lower amount ($200) that is to be paid in October. On September 15, LTC paid $1,500 to employees for the hours they worked from September 1-15. For the two weeks ended September 25, LTC provided 360 court-hours for members and collected its fees in cash. On September 26, LTC's courts were used for a member's birthday party. LTC expects the member to pay the special event booking fee of $210 on Saturday, October 2. On September 27, LTC wrote a $300 check to an advertising company to prepare advertising flyers that will be inserted in local newspapers on October 1. On September 29, LTC received $210 on account for the member's birthday party that was held on September 26. On September 30, LTC submitted its electricity and natural gas meter readings online. According to the suppliers' websites, the total charges for the month will be $300. This amount will be paid on October 17 through a preauthorized online payment. Indicate the accounting equation effects of the August and September events, using table below. Reference each transaction by

Answer 1

Following is the assets, liabilities and stockholder's equity :-

Date	assets	amount	liabilities	amount	stockholder's equity	amount
August 31.	Cash	$1500 ($150*10)	unearned income	$1500
September 11 .	Cash	$3800 ($20*190)			Service revenue	$3800
September 13.	Supplies	$200	accounts payable	$200
September 15 .	Cash	($1500)			Salaries	($1500)
September 25.	Cash	$7200 ($20*360)			Service revenue	$7200
September 26 .	Accounts receivable	$210			Accrued income	$210
September 27 .	Cash	($300)
	Prepaid advertising exp	$300
September 29.	Cash	$210
	Accounts receivable	($210)
September 30.			Outstanding electricity exp	$300	Electricity charges	($300)