On 2020 September 1, North Sports Club., received a total of USD 120,000 as payment in advance for one-year fees from club members. A liability account was credited to record this cash receipt. By the end of the year, one-third of the membership fees received in advance had been earned. Give the entries to adjust the accounts at December 31, assuming annual financial statements are adjusted and prepared at year-end. Group of answer choices Debit Unearned membership fees 40,000, credit membership fee revenue 40,000 Debit Membership fee revenue 10,000, credit Unearned membership fees 10,000 Debit Membership fee revenue 40,000, credit Unearned membership fees 40,000 Debit Unearned membership fees 10,000, credit membership fee revenue 10,000
On 2020 September 1, North Sports Club., received a total of USD 120,000 as payment in advance for one-year fees from club members. A liability account was credited to record this cash receipt. By the end of the year, one-third of the membership fees received in advance had been earned. Give the entries to adjust the accounts at December 31, assuming annual financial statements are adjusted and prepared at year-end. Group of answer choices Debit Unearned membership fees 40,000, credit membership fee revenue 40,000 Debit Membership fee revenue 10,000, credit Unearned membership fees 10,000 Debit Membership fee revenue 40,000, credit Unearned membership fees 40,000 Debit Unearned membership fees 10,000, credit membership fee revenue 10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On 2020 September 1, North Sports Club., received a total of USD 120,000 as payment in advance for one-year fees from club members. A liability account was credited to record this cash receipt. By the end of the year, one-third of the membership fees received in advance had been earned. Give the entries to adjust the accounts at December 31, assuming annual financial statements are adjusted and prepared at year-end.
Group of answer choices
Debit Unearned membership fees 40,000, credit membership fee revenue 40,000
Debit Membership fee revenue 10,000, credit Unearned membership fees 10,000
Debit Membership fee revenue 40,000, credit Unearned membership fees 40,000
Debit Unearned membership fees 10,000, credit membership fee revenue 10,000
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