ective 2 S3-3 Applying the revenue recognition principle Takiko Gym collects membership fees quarterly in at the beginning of each quarter Members thus pay a total amount of $450 in January, April, July and September for three months of monthly membership fee in advance. Using the Revenue Recognition Principle explain a. how the fees collected should be recorded as revenue by Takiko Gym b. why the unearned revenue is considered a liability. bjective 2 S3-4 Applying the matching principle Cindy and Wendy decide to become roommates for the year. They split the prepaid broadband annual charges of $1,200. Cindy decides to move out at the end of August Calculate how much Wendy should pay back to Cindy. tifying types of adjusting entries ct list of transactions for Anuradha's Goals follows: Apr. 1 Paid six months of rent, $4,800. 10 Received $1,200 from customer for six-month service contract that began April 1 15 Purchased a computer for $1,000 18 Purchased $300 of office supplies on account. 30 Work performed but not yet billed to customer, $500. 30 Employees earned $600 in salaries that will be paid May 2. r each transaction, identify what type of adiusting entry would be needed. Se om the following four types of adjusting entries: deferred expense. ccrued expense, accrued revenue. deferred r Journalizing and posting adiuti