anagia
Sep 18, 2010, 11:05 AM
The following data are taken from the comparative balance sheets of Girard Billiards Club, which prepares its financial statements using the accrual basis of accounting.
December 31 2011 2010
Fees receivable from members $13,071 $7,139
Unearned fees revenue 17,168 23,066
Fees are billed to members based upon their use of the club's facilities. Unearned fees arise from the sale of gift certificates, which members can apply to their future use of club facilities. The 2011 income statement for the club showed that fees revenue of $149,127 was earned during the year.
(Hint: You will probably find it helpful to use T accounts to analyze these data.)
(a) Prepare journal entries for each of the following events that took place during 2011.
(1) Fees receivable from 2010 were all collected.
(2) Gift certificates outstanding at the end of 2010 were all redeemed.
(3) An additional $33,331 worth of gift certificates were sold during 2011. A portion of these were used by the recipients during the year; the remainder was still outstanding at the end of 2011.
(4) Fees for 2011 for services provided to members were billed to members.
(5) Fees receivable for 2011 (i.e. those billed in item[4] above) were partially collected.
Account / Description Debit Credit
1.
2.
3.
(To record the sale of gift certificates)
(To record certificates used)
4.
5.
(b) Determine the amount of cash received by the club, with respect to fees, during 2011.
$
December 31 2011 2010
Fees receivable from members $13,071 $7,139
Unearned fees revenue 17,168 23,066
Fees are billed to members based upon their use of the club's facilities. Unearned fees arise from the sale of gift certificates, which members can apply to their future use of club facilities. The 2011 income statement for the club showed that fees revenue of $149,127 was earned during the year.
(Hint: You will probably find it helpful to use T accounts to analyze these data.)
(a) Prepare journal entries for each of the following events that took place during 2011.
(1) Fees receivable from 2010 were all collected.
(2) Gift certificates outstanding at the end of 2010 were all redeemed.
(3) An additional $33,331 worth of gift certificates were sold during 2011. A portion of these were used by the recipients during the year; the remainder was still outstanding at the end of 2011.
(4) Fees for 2011 for services provided to members were billed to members.
(5) Fees receivable for 2011 (i.e. those billed in item[4] above) were partially collected.
Account / Description Debit Credit
1.
2.
3.
(To record the sale of gift certificates)
(To record certificates used)
4.
5.
(b) Determine the amount of cash received by the club, with respect to fees, during 2011.
$