M3-7 (Algo) Determining the Financial Statement Effects of Operating Activities involving Revenues LO3-4 The following transactions are July activities of Bennett's Bowling, Inc., which operates several bowling centers, offering customers lanes for games and merchandise for sale. a. Bennett's collected $17,000 from customers for games played in July. b. Bennett's sold bowling merchandise inventory from its pro shop for $7,000; received $4,300 in cash and customers owed the rest on account. [Consider only the effect on revenue here. Do not consider cost of goods sold for this question.] c. Bennett's received $4,400 from customers who purchased merchandise in June on account. d. The men's and ladies' bowling leagues gave Bennett's a deposit of $2,700 for the upcoming fall season. For each of the above transactions, complete the tabulation, indicating the amount of each transaction. (Remember that A = L + SE; R- E = Nl; and NI affects SE through Retained Earnings.) The first transaction is provided as an example. (Reductions in account balances and loss amount should be indicated with a minus sign.) Balance Sheet Income Statement Assets Liabilities Revenues Expenses Net Income Stockholders' Equity 17,000 a. 17,000 17,000 17,000 b. d. M3-8 (Algo) Determining the Financial Statement Effects of Operating Activities involving Expenses LO3-4 The following transactions are July activities of Bennett's Bowling, Inc., which operates several bowling centers, offering customers lanes for games and merchandise for sale. e. Bennett's provided to customers bowling merchandise inventory costing Bennett's $4,490. [Consider only the effect on cost of goods sold (expense) here. Do not consider sales revenue for this question.) f. Bennett's paid $3,500 on the electricity bill for June (recorded as an expense in June). g. Bennett's paid $2,800 to employees for work in July. h. Bennett's purchased $1,800 in insurance for coverage from August 1 to November 1. i. Bennett's paid $2,700 to plumbers for repairing a broken pipe in the restrooms. j. Bennett's received the July electricity bill for $3,000 to be paid in August. For each of the above transactions, complete the tabulation, indicating the amount and effect (+ for increase and for decrease) of each transaction. (Remember that A = L + SE;R- E = NI; and Nl affects SE through Retained Earnings.) The first transaction is provided as an example. (Reductions in account balances and loss amounts should be indicated with a minus sign.) Balance Sheet Liabilities Income Statement Expenses Assets Revenues Net Income Stockholders' Equity (4,490) e. (4,490) 4,490 (4,490) f. g. h. i. j