The following data are taken from the comparative statements of financial position of Newman Billiards Club, which prepares its financial statements using the accrual basis of accounting.

Members are billed 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 $153,000 was recognized during the year.

Instructions
(a) Prepare journal entries for each of the following events that took place during 2014.
(1) Accounts receivable from 2013 were all collected.

(2) Gift certificates outstanding at the end of 2013 were all redeemed.

(3) An additional $35,000 worth of gift certificates were sold during 2014. A portion of these was used by the recipients during the year; the remainder was still outstanding at the end of 2014.
(4) Services provided to members for 2014 were billed to members.

(5) Accounts 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 member services, during 2014.

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December 31 Accounts receivable from members Unearned service revenue 2014 2013 $ 9,000 $12,000 20,000 17,000