Ch 3 HW Part 2 1 Sever Part 1 of 3 points ellook Prive References Required information (The following information applies to the questions displayed below) Lakewood Tennis Club (LTC) operates an indoor tennis facility. The company charges a $195 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 The following events occurred. a. On August 31, 8 new members joined and paid the annual membership fee in cash. The memberships do not begin until September 1 b. For the week ended September 11, LTC provided 245 court-hours of rental services for members and collected its fees in cash c. On September 13, LTC purchased and received tennis balls and other supplies. The regular retail price was $350, but LTC negotiated a lower amount ($340) that is to be paid in October, d. On September 15, LTC paid $2.900 to employees for the hours they worked from September September 1 to 15. e. For the two weeks ended September 25, LTC provided 352 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 $245 on Saturday, October 2 g. On September 27, LTC wrote a $440 check to an advertising company to prepare advertising flyers that will be inserted in local newspapers on October 1 h. On September 29, LTC received $245 on account for the member's birthday party that was 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 $390. This amount will be paid on October 17 through a preauthorized online payment Required: 1. Indicate the accounting equation effects of the August and September events, using table below. (Enter any decreases to Assets, Liabilities, and Stockholder's Equity with a minus sign.) Assets Liabilities Stockholders Equity Required: 1. Indicate the accounting equation effects of the August and September events, using table below. (Enter any decreases to Assets, Liabilities, and Stockholder's Equity with a minus sign.) a b e a 0 9 Assets Liabilities . . Stockholders' Equity