Problem 3 (15 points) The following transactions are July activities of Bill\'s

ID: 2399895 • Letter: P

Question

Problem 3 (15 points) The following transactions are July activities of Bill's Extreme Bowling, Inc. which operates several bowling center. For each of the transactions, complete the table indicating the account, amount and direction of the effect (+for increase and -for decrease) of each transaction under the accrual basis. The first transaction is provided as an example Stockholder's Service Revenue +16,300 Assets a Bill's collected $16300 from Cash +16,300 customers for services related to games played in July bBil's billed a customer for $680 for a party held at the center on the last day of July. The bill is to be paid in C The men's and women's bowling leagues gave Ball's advance payments totaling $1,400 for the fall season that Bill's received $2,400 froe credit sales made to customers last month (=June) e Biäll's paild $1,600 to plumbers for repairing a broken pipe in f Bill's received the Jaly electricity bill for $4,100 which will be paid in g Bill's paid $5,275 to for work in Prepare an income statement for Bill's Extreme Bowling Inc. for the month ended Jaly 31.

Explanation / Answer

Transactions

Assets

Liabilities

Shareholders equity

cash + 16300

service revenue +16300

Accounts receivables +680

service revenue + 680

C-

cash +14000

Unearned revenue +1400

cash +2400 Accounts receivables -2400

cash -1600

repair expenses -1600

Electricity bill payable +4100

electricity expense -4100

cash -5275

salary expense -5275

Income statement

service revenue

16300+680

16980

less expenses

repair expense

1600

electricity expense

4100

salary expense

5275

total expenses

10975

net income

6005