The following selected data are taken from the comparative financial statements of American Curling Club. The club prepares its financial statements using the accrual basis of accounting.

September 30 2014 2013 Accounts receivable for member dues $ 15,000 $ 19,000 Unearned sales revenue 20,000 23,000 Service revenue (from member dues) 151,000 135,000 Dues are billed to members based upon their use of the club’s facilities. Unearned sales revenues arise from the sale of tickets to events, such as the Skins Game.

Instructions

(Hint: You will find it helpful to use T-accounts to analyze the following data. You must analyze these data sequentially, as missing information must first be deduced before moving on. Post your journal entries as you progress, rather than waiting until the end.)

(a) Prepare journal entries for each of the following events that took place during 2014.

1 Dues receivable from members from 2013 were all collected during 2014.

2 During 2014, goods were provided for all of the unearned sales revenue at the end of 2013.

3 Additional tickets were sold for $44,000 cash during 2014; a portion of these were used by the purchasers during the year. The entire balance remaining in Unearned Sales Revenue relates to the upcoming Skins Game in 2014.

4 Dues for the 2013–2014 fiscal year were billed to members.

5 Dues receivable for 2014 (i.e., those billed in item (4) above) were partially collected.

(b) Determine the amount of cash received by American from the above transactions during the year ended September 30, 2014.

AppendixLO1