The following transactions are July 2014 activities of Craig’s Bowling, Inc., wh

Question

The following transactions are July 2014 activities of Craig’s Bowling, Inc., which operates several bowling centers (for games and equipment sales).

Craig’s sold bowling merchandise costing $3,990. [Do not consider sales revenue for this question.]

For each of the following transactions, complete the tabulation, 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.

Balance Sheet

Assets = LIabilities + Stockholders' Equity

e. Assets= -$3,990; Stockholders' Equity= -3,990

f.

g.

h.

i.

j.

Income Statement

Revenues - Expenses + Net Income

e. Expenses= 3,990; Net Income= -3,990

f.

g.

h.

i.

j.

The following transactions are July 2014 activities of Craig’s Bowling, Inc., which operates several bowling centers (for games and equipment sales).

Explanation / Answer

+ 3990   for cash

- 3990 for inventory

Balance sheet Income statment Asset = Liability + stock holders equity Revenue - expense = Net income e

+ 3990   for cash

- 3990 for inventory

f - 2400 -2400 g -3000 -3000 3000 -3000 h -1300    [3900/3 months] - 1300 1300 -1300 i -2700 -2700 2700 -2700 j +3700 -3700 3700 -3700

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