M3-11 recording accrual basis revenues [lo 3-3]

the following transactions are february activities of swing hard incorporated, which offers indoor golfing lessons in the northeastern united states.

a. swing hard collected $15,000 from customers for lesson services given in february.
b. swing hard sold a gift card for golf lessons for $150 cash in february.
c. swing hard received $4,000 from services provided on account to customers in january.
d. swing hard collected $2,250 in advance payments for services to start in june.
e. swing hard bills a customer $125 for services provided between february 25 and february 28. the bill is to be paid in march.
prepare journal entries to record the above transactions. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)

Explanation:

The journal entries are shown below:

A. Cash A/c Dr $15,000

       To Service revenue A/c $15,000

(Being cash is received)

B. Cash A/c Dr $150

       To Unearned Service revenue A/c $150

(Being unearned service revenue recorded)

C. Cash A/c Dr $4,000

      To Accounts Receivable $4,000

(Being cash received for service provided)

D. Cash A/c Dr $2,250

       To Unearned Service revenue A/c $2,250

(Being advance payment is received)

E. Accounts receivable A/c Dr $125

        To Service revenue A/c                $125

(Being service provided is recorded)

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%