Question

Problem 4-1A (Part Level Submission) The following selected data are taken from the comparative financial statements of Yankee Curling Club. The club prepares its financial statements using the accrual accounting. September 30 Accounts receivable for member dues 2017 $15,000 20,000 151,000 2016 $19,000 23,000 135,000 Unearned sales revenue Service revenue (from member dues) Dues are billed to members based upon their use of the club's facilities. Unearned sales revenues arise from the sale of tickets to events, such as the Skins Game. (Hint: You will find it helpful to use T-accounts to analyze the following data. You must analyze these data sequentially, as missing information must first be deduced on. Post your journal entries as you progress, rather than waiting until the end.) (a) Prepare journal entries for each of the following events that took place during 2017. (If no entry is required, select "No Entry" for the account titles and ente amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 1. Dues receivable from members from 2016 were all collected during 2017. 2. During 2017, goods were provided for all of the unearned sales revenue at the end of 2016. 3. Additional tickets were sold for $44,000 cash during 2017; a portion of these were used by the purchasers during the year. The entire balance remaining in Unea Revenue relates to the upcoming Skins Game in 2017. 4. Dues for the 2016-2017 fiscal year were billed to members. 5. Dues receivable for 2017 (i.e., those billed in item 4 above) were partially collected.

Answer 1

Journal entry is the book of original entry which records the transactions, in terms of debit and credit. It records increase in assets, expenses and losses as debit and decrease in assets, expenses and losses as credit. Similarly, it records increase in liabilities, incomes and gains as credit and decease as debit.

The journal entries are given below:

Credit Debit 19,000 No. Account Titles and Explanations 1 Cash Accounts Receivable for Member Dues (To record collection of dues receivable from members) 19,000 23,000 2 Unearned Sales Revenue Sales Revenue (To record unearned sales revenue earned) 23,000 44,000 3 Cash Unearned Sales Revenue (To record sale of additional tickets) 44,000 24,000 Unearned Sales Revenue ( 44,000 - 20,000) Sales Revenue (To record unearned sales revenue earned) 24,000 151,000 4 Accounts Receivable for Member Dues Service Revenue (To record billings for service revenue) 151,000 136,000 5 Cash ( 151,000 - 15,000) Accounts Receivable for Member Dues (To record collection of dues receivable) 136,000

Dues collected from members from 2016 is amounted to $19,000. When the dues are collected, Cash is debited and Accounts Receivable for Member Dues are credited.

When goods are provided to unearned sales revenue, Unearned Sales Revenue account is debited and Sales Revenue account is credited with 2016 unearned sales revenue balance $23,000.

Out of additional ticket sale of $44,000, the unearned revenue balance in 2017, $20,000 is still to be earned. Therefore balance amount is adjusted in this year's revenue.

Dues from 2016-17 is $151,000.

Dues receivable from 2017 partially collected means, out dues $151,000 all amount except the ending balance of accounts receivable $15,000 is collected. Therefore, cash received is $151,000 - $15,000 = $136,000.