Question

The following information applies to the questions displayed below Lakewood Tennis Club (LTC) operates an indoor tennis facility. The company charges a $165 annual membership fee plus a member rental rate of $15 per court per hour. LTC's fiscal year-end is August 31. LTC's revenue recognition policy is described in its financial statement notes as follows 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 rental fees are generated by renting courts each day, so they are reported as service revenue when courts are used by members. ips do not begin until On August 31, 8 new members joined and paid the annual membership fee in cash. The me September 1. For the week ended September 11, LTC provided 215 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 retail price was $290, but LTC negotiated a lower amount ($280) that is to be paid in October. On September 15, LTC paid $2,300 to employees for the hours they worked from September 1-15. For the two weeks ended September 25, LTC provided 362 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 $215 on Saturday, October 2 On September 27, LTC wrote a $380 check to an advertisin local newspapers on October 1. On September 29, LTC received $215 on account for the member's birthday party that was g company to prepare advertising flyers that will be inserted in held on September 26. On September 30, LTC submitted its electricity and natural gas meter readings online. According to the suppliers' Websites, the total charges for the month will be $ through a preauthorized online payment Required: < Prev of 6 Next >

Answer 1

Following is the assets, liabilities and stockholder's equity :-

Date	assets	amount	liabilities	amount	stockholder's equity	amount
August 31.	Cash	$1320 ($165x8)	unearned income	$1320
September 11 .	Cash	$3225 ($15x215)			Service revenue	$3225
September 13.	Supplies	$280	accounts payable	$280
September 15 .	Cash	($2300)			Salaries	($2300)
September 25.	Cash	$5430 ($15x362)			Service revenue	$5430
September 26 .	Accounts receivable	$215			Accrued income	$215
September 27 .	Cash	($380)
	Prepaid advertising exp	$380
September 29.	Cash	$215
	Accounts receivable	($215)
September 30.			Outstanding electricity exp	$330	Electricity charges	($330)