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

Accounts receivable for member fees Unearned service revenue

2014

$18,000 17,000

2013

$20,000 10,000

Fees are billed to members based upon their use of the clubs 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.