The following transactions are July activities of Craig’s Bowling, Inc., which o

Question

The following transactions are July activities of Craig’s Bowling, Inc., which operates several bowling centers (for games and equipment sales).

e.Craig's provided to customers bowling merchandise inventory costing Craig's $4,490. [Do not consider sales revenue for this question.]

f.Craig’s paid $3,600 on the electricity bill for June (recorded as expense in June).

g.Craig’s paid $3,300 to employees for work in July.

h.Craig’s purchased $3,600 in insurance for coverage from July 1 to October 1. (Part is an expense for July and part is a prepaid expense to be used in future months.)

i.Craig’s paid $1,500 to plumbers for repairing a broken pipe in the restrooms.

j.Craig’s received the July electricity bill for $2,700 to be paid in August.

For each of the above transactions, complete the balance sheet, indicating the amount and net effect (+ for increase and for decrease) of each transaction. (Remember that A = L + SE, R E = NI, and NI affects SE through Retained Earnings.) The first transaction is provided as an example.

Explanation / Answer

Balance Sheet Income Statement Assets Liabilities Stockholders’Equity Revenues Expenses Net income e -4490 -4490 4490 -4490 f -3600 -3600 g -3300 -3300 3300 -3300 h -1200 -1200 1200 -1200 i -1500 -1500 1500 -1500 j 2700 -2700 2700 -2700

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.