The following data are taken from the comparative balance sheets of Cascade Billiards Club, which prepares its financial statements using the accrual basis of accounting.

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 2022 income statement for the club showed that service revenue of $161,000 was recorded during the year.

Instructions

a. Prepare journal entries for each of the following events that took place during 2022.
1. Accounts receivable from 2021 were all collected.
2. Gift certificates outstanding at the end of 2021 were all redeemed.
3. An additional $38,000 worth of gift certificates were sold during 2022. A portion of these was used by the recipients during the year; the remainder was still outstanding at the end of 2022.
4. Services performed for members for 2022 were billed to members.
5. Accounts receivable for 2022 (i.e., those billed in item [4] above) were partially collected.
b. Determine the amount of cash received by the club, with respect to member services, during 2022.

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Account Name Accounts Receivable (from members) Unearned Service Revenue 12/31/22 Balance $14,000 17,000 12/31/21 Balance $ 9,000 25,000