Roger\'s Gym receives $500 from a customer for a one- year membership to the clu

Question

Roger's Gym receives $500 from a customer for a one- year membership to the club. What is the effect on the accounting equation and the income statement accounts?

A = Assets, L = Liabilities, SHE = Share Holders Equity, Rev = Revenues, and Exp = Expenses

A.) A: No effec, L: No effect, SHE: No effect, Rev: No effect, and Exp: No Effect

B.) A: Increase, L: No effect, SHE: Increase, Rev: Increase, and Exp: No effect

C.) A: Decrease, L: Decrease, SHE: Decrease, Rev: No effect, and Exp: Increase

D.) A: Increase, L: Increase, SHE: No effect, Rev: No effect, and Exp: No effect

E.) A: No effect, L: Increase, SHE: Increase, Rev: Increase, and Exp: Decrease

A.) A: No effec, L: No effect, SHE: No effect, Rev: No effect, and Exp: No Effect

B.) A: Increase, L: No effect, SHE: Increase, Rev: Increase, and Exp: No effect

C.) A: Decrease, L: Decrease, SHE: Decrease, Rev: No effect, and Exp: Increase

D.) A: Increase, L: Increase, SHE: No effect, Rev: No effect, and Exp: No effect

E.) A: No effect, L: Increase, SHE: Increase, Rev: Increase, and Exp: Decrease

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Dr Cr Cash Dr                   500.00 To Revenue received in advance                  500.00 D.) A: Increase, L: Increase, SHE: No effect, Rev: No effect, and Exp: No effect Assets are increased as cash is increased Revenue received in advance are increased as liability is increased

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