The following data are taken from the comparative balance sheets of

Golfview Inn, which prepares its financial statements using the accrual

basis of accounting.

December 31 2014 2013

Accounts receivable for member fees $18,000 $20,000

Unearned service revenue 17,000 10,000

Fees are billed to members 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 2014

income statement for the club showed that service revenue of

$190,000 was recognized during the year. Instructions (Hint: You may

find it helpful to use T-accounts to analyze these data.)

(a) Prepare journal entries for each of the following events that took

place during 2014. 1. Fees receivable from 2013 were all collected

during 2014. 2 Gift certificates outstanding at the end of 2013 were all

redeemed during 2014. 3. An additional $40,000 worth of gift

certificates were sold during 2014; a portion of these were used by the

recipients during the year; the remainder were still out-standing at the

end of 2014. 4. Fees for 2014 were billed to members. 5. Fees

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

collected.

(b) Determine the amount of cash received by the club with respect to

fees during 2014.