How is this expressed on a balance sheet and on an income statement? he followin

Question

How is this expressed on a balance sheet and on an income statement? he following transactions are July activities of Craig's Bowling, Inc. , which operates several bowling centers (for games and e e. Craig's provided to customers bowling merchandise inventory costing Craig's $4,9 f. Craig's paid $3,600 on the electricity bill for June (recorded as exper g. Craig's paid $3,200 to employees for work in July. s purchased $3,600 in insurance for coverage from July 1 to October 1. (Part is an expense for July and part is a p raig's paid $1,500 to plumbers for repairing a broken pipe in the restrooms. j. Craig's received the July electricity bill for $3,800 to be paid in August. r each of the above transactions, complete the tabulation, indicating the amount and net effect (+ for increase and - for dec first transaction is provided as an example. Balance Sheet Income Statement Assets Liabilities+ Liabilities +Stockholders RevenuesExpensesNet Income Equity 4,990 3,600 3,200 3,600 1,500 4,990 4,990 3,600 3,200 3,600 1,500 4,990 3,600 3,200 3,600 1,500 3,600 3,200 -900 1,500 2,700

Explanation / Answer

Balance Sheet Income Statement Note Assets = Liabilities + Stockholder's equity Revenues - Expenses = Net Income           -4,900                            -4,900         4,900            -4,900 Merchandise issed to customer           -3,600 =        -3,600                     -   Since the cost is already booked in the June, the same will not be booked in July           -3,200 =                            -3,200         3,200            -3,200 Empoyee cost incurred           -1,200 =                            -1,200         1,200            -1,200 *Calculation show n below, three month insurance & one month cost booked and prepaid for 2 months           -1,500 =                            -1,500         1,500            -1,500 Repairing charges paid =                            -3,800         3,800            -3,800 Liability for Electricity booked h The entry would be Inursance expesnse Dr         1,200 Prepaid Insurance Dr         2,400 To, Bank Cr           3,600 Note- Best effort have been made to answer the question correctly, in case of any discrepencies kindly comment and i will try to resolve it as soon as possible. Please provide positive feedback.

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