Question

NEXT FULL SCREEN PRINTER VERSION BACK The following data are taken from the comparative balance sheets of Bundies Billiards Club, which prepares its financial statements using the accrual basis of accounting. December 31 2017 2016 8,000 24,200 $13,800 Accounts receivable from members Unearned service revenue 6,300 Members are billed based upon their use of the club's facilities. Unearned service revenues arise from the sale of gift certificates, which members can apply to their future use of club facilities. The 2017 income statement for the club showed that service revenue of $164,000 was earned during the year Your answer is partially correct. Try again Prepare journal entries for each of the following events that took place during 2017. (Hint You will probably find it helpful to use T accounts to analyze these data.) (1) Accounts receivable from 2016 were all collected. (2) Gift certificates outstanding at the end of 2016 were all redeemed. (3) (a) An additional $39,000 worth of gift certificates were sold during 2017 (b) A portion of the above gift certificates was used by the recipients during the year; the remainder was still outstanding at the end of 2017 (4) Services performed for members for 2017 were billed to members. (5) Accounts receivable for 2017 (i.e, those billed in item [4] above) were partially collected. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Tities Debit Credit 1. Cash 8000 Accounts Receivable 8000 2. Unearned Service Revenue 24200 24200 Service Revenue 3 (a Cash 39000 Unearned Service Revenue 39000 3 (b) lUnearned Service Revenue 16300 Service Revenue 16300 4. Accounts Receivable Service Revenuc 5. Cash Accounts Recelvable

Answer 1

SOLUTION:

Particulars	Debit	Credit
Cash	8,000
Accounts Receivable		8,000
Unearned Service Revenue	24,200
Service Revenue		24,200
Cash	39,000
Unearned Service Revenue		39,000
Unearned Service Revenue	22,700
Service Revenue (39,000 - 16,300)		22,700
Accounts Receivable	117,100
Service Revenue(164,000 - 22,700 - 24200)		117,100
Cash	103,300
Accounts Receivable (117,100 - 13,800)		103,300