Lakewood Tennis Club (LTC) operates an indoor tennis facility. The company charges a $200 annual membership fee plus a m
Posted: Sun Jun 05, 2022 8:37 pm
Lakewood Tennis Club (LTC) operates an indoor tennis facility.
The company charges a $200 annual membership fee plus a member
rental rate of $12 per court per hour. LTC’s fiscal year-end is
August 31. LTC’s revenue recognition policy is described in its
financial statement notes as follows:
Revenue Recognition—LTC generates revenue from two
sources. Annual membership fees arise from providing 12 months of
services to members, so they are reported as membership revenue
each month as these services are provided. Court rental fees are
generated by renting courts each day, so they are reported as
service revenue when courts are used by members.
The following events occurred.
Required:
The company charges a $200 annual membership fee plus a member
rental rate of $12 per court per hour. LTC’s fiscal year-end is
August 31. LTC’s revenue recognition policy is described in its
financial statement notes as follows:
Revenue Recognition—LTC generates revenue from two
sources. Annual membership fees arise from providing 12 months of
services to members, so they are reported as membership revenue
each month as these services are provided. Court rental fees are
generated by renting courts each day, so they are reported as
service revenue when courts are used by members.
The following events occurred.
Required: