okmarks People Window Help 70% [+) Chapter 3. Homework Reporting Cash Ba O ezto.

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okmarks People Window Help 70% [+) Chapter 3. Homework Reporting Cash Ba O ezto.mheducation.com/hm.tpx M3-8 Preparing an Income Statement and Calculating Net Profit Margin [LO 3-1, LO 3-5] The following transactions are July activities of Birs Extreme Bowing, Inc., which operates several bowling centers a. Bilrs collected $17,400 from customers for services related to games played in July b. Bil's billed a customer for $330 for a party held at the center on the last day of July. The billis to be paid in August c. The men's and women's bowling leagues gave Bills advance payments totaling $3,100 for the fall season that starts in September d. Bill's received $1,350 from credit sales made to customers last month (in June). e. Bill's paid $2,100 to plumbers for repairing a broken pipe in the restrooms. r. Bil's paid $2,650 for the June electricity bill and received the July bill for $3,100, which will be paid in August. g. Bil's paid $5,895 to employees for work in July Required: 1. Prepare an income statement for Bill's Extreme Bowling, Inc., for the month ended July 31. (This income statement would be considered "preliminary because it uses unadjusted balances.) BILL'S EXTREME BOWLING, INC. Income Statement Accounts Receivable $ 17400 7,400 Accumulated Depreciation-Buildings 2. What is the company's net profit margin, expressed as a percent. (Round your answer to 1 decimal place.) Profit Margin

Explanation / Answer

Income Statement Service revenue Service for Games collected 17,400 Billed to customer for party 330 Total revenue 17770 Less: expensse Plumbing repair 2100 Utilities expense 3100 Wages and salaries expense 5895 Net Income 6675 Nnet profit Margin: Net Income / Total revenue *100 6675 / 17770 *100 = 37.56%

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