Ask Question
21 September, 15:37

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.)

+4
Answers (1)
  1. 21 September, 17:58
    0
    A

    cash 15,000 debit

    accounts receivable 15,000 credit

    B

    cash 150 debit

    gift card liaiblity 150 credit

    C

    accounts receivable 4,000 debit

    services revenue 4,000 credit

    D

    cash 2,250 debit

    unearned revenue 2,250 credit

    E

    accounts receivable 125 debit

    service revenues 125 credit

    Explanation:

    A

    we increase cash and decrease the customers accounts

    B

    we record the cash proceeds and use a liability for the obligation in the near future to provide services to a customer

    C

    we recognize the revenue and increase our accounts receivable

    D

    as the colleciton is in advance the revenue is not earned. this is a liability as we now have the obligation to perform services in the near future

    E

    we must match the revenue whn the time it occurs and that time was february not march.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The following transactions are February activities of Swing Hard Incorporated, which offers indoor golfing lessons in the northeastern ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers