Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below] Lakewood Tennis Club (LTC) operates an indoor tennis facility The company charges a $135 annual membership fee plus a member rental rate of $12 per court per described in its financial statement notes as follows: hour. LTC's fiscal year-end is August 31. LTC's revenue recognition policy is 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 tal fees are generated by renting courts each day, so they are reported as service revenue when courts are used by members On August 31, 6 new members joined and paid the annual membership fee in cash. The memberships do not begin unti September 1. For the week ended September 11, LTC provided 185 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 re price was $245, but LTC negotiated a lower amount ($230) that is to be paid in October. On September 15, LTC paid $1,800 to employees for the hours they worked from September 1-15. For the two weeks ended September 25, LTC provided 355 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 $185 on Saturday. October 2 On September 27, LTC wrote a $330 check to an advertising company to prepare advertising flyers that will be inserted in local newspapers on October 1. On September 29. LTC received $185 on account for the member's birthday party that w eld on September 26. On September 30. LTC submitted its electricity and natural gas meter readings online. According the suppliers' Websites, the total charges for the month wll be $270. This amount will be paid on October 17 through reauthorized online payment.

Explanation / Answer

Date General Ledger Dr Cr Answer 1 31-Aug Cash $810 Unearned Revenue[135*6] $810 Answer 2 11-Sep Cash $2,220 Revenue from Rental services[185*12] $2,220 Answer 3 13-Sep Supplies $230 Accounts payable $230 Answer 4 15-Sep Salaries & wages expenses $1,800 Cash $1,800 Answer 5 25-Sep Cash $4,260 Revenue from Rental services[355*12] $4,260 Answer 6 26-Sep Accounts Receivable $185 Revenue from Rental services $185 Answer 7 27-Sep Prepaid Expense - Advertising $330 Cash $330 Answer 8 29-Sep Cash $185 Accounts Receivable $185 Answer 9 30-Sep Utilities expenses $270 Accured expenses $270

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