M$3-6($Algo$)$ Determining the Financial Statement Effects of Operating Activities Involving Revenues

LO$3-4$

The following transactions are July activities of Bennett's Bowling, Incorporated, which operates several bowling centers, offering

customers lanes for games, snack bar service, and merchandise for sale from the pro shop.

a$.$ Bennett's collected $$31,000$ from customers for games played in July.

b$.$ Bennett's served customers food from its snack bar; received $$7,500$ in cash.

c$.$ Bennett's received $$4,000$ from customers who purchased merchandise in June from the pro shop on account.

d$.$ The men's and ladies' bowling leagues gave Bennett's a deposit of $$4,600$ for the upcoming fall season.

For each of the above transactions, complete the tabulation, indicating the amount of each transaction. $($Remember that Assets $=$

Liabilities $+$ Stockholders' Equity; Revenues $-$ Expenses $=$ Net Income; and Net Income affects Stockholders' Equity through Retained

Earnings.$)$ The first transaction is provided as an example.

Note: Reductions in account balances and loss amounts should be indicated with a minus sign.