On 12 December Northlake Nordic Centre Inc. collects $16,400 in cash from day-pass sales and ski rentals. Record the revenue.

Answer

Dr Cash 16400; Cr Service Revenue 16400

Accounts - Cash - Service Revenue - Unearned Revenue - Accounts Receivable - Retained Earnings **Cash** (asset up — debit) and **Service Revenue** (earned today — credit). The trap is **Retained Earnings**: revenue reaches it only through closing at year end; the entry must name the revenue account so the income statement can be built. Unearned Revenue is for cash received before the service; Accounts Receivable is for service before the cash.

Hermanson Vol 1 ch 2 (a fifteen-transaction month, adapted shape); Dauderis & Annand §2.2 (concept map C7, second half)