Exercise 3-19 a-b (Part Level Submission)

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

December 31		2020		2019
Accounts receivable from members		$13,800		$ 8,000
Unearned service revenue		16,300		24,200

Members are billed 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 2020 income statement for the club showed that service revenue of $164,000 was earned during the year.

(a)

Prepare journal entries for each of the following events that took place during 2020. (Hint: You will probably find it helpful to use T-accounts to analyze these data.)

(1)		Accounts receivable from 2019 were all collected.
(2)		Gift certificates outstanding at the end of 2019 were all redeemed.
(3)		(a) An additional $39,000 worth of gift certificates were sold during 2020.
		(b) A portion of the above gift certificates was used by the recipients during the year; the remainder was still outstanding at the end of 2020.
(4)		Services performed for members for 2020 were billed to members.
(5)		Accounts receivable for 2020 (i.e., those billed in item [4] above) were partially collected.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Account Titles	Debit	Credit
1.
2.
3 (a)
3 (b)
4.
5.

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