Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help please with these 3 questions ASAP!! Lakewood Tennis Club (LTC) operates an indoor tennis facility. The company charges a $170 annual membership fee
Need help please with these 3 questions ASAP!!
Lakewood Tennis Club (LTC) operates an indoor tennis facility. The company charges a $170 annual membership fee plus a member rental rate of $12 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 earns revenue from two sources. Annual membership fees are earned by providing twelve months of services to members, so they are reported as membership revenue as they are earned over that 12-month period. Court rental fees are earned by renting courts each day, so they are reported as service revenue as courts are used by members. On August 31, 6 new members joined and paid the annual membership fee in cash. The memberships do not begin until September 1. For the week ended September 11, LTC provided 220 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 $305, but LTC negotiated a lower amount ($290) that is to be paid in October. On September 15, LTC paid $2,400 to employees for the hours they worked from September 1-15. For the two weeks ended September 25, LTC provided 372 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 $220 on Saturday, October 2. On September 27, LTC wrote a $390 check to an advertising company to prepare advertising flyers that will be inserted in local newspapers on October 1. On September 29, LTC received $220 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 $340. This amount will be paid on October 17 through a preauthorized onlineStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started