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 $25,000 from customers for games played in July. b. Bennett's sold bowling merchandise inventory from its pro shop for $8,400; received $3,500 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 $3,100 from customers who purchased merchandise in June on account. d. The men's and ladies' bowling leagues gave Bennett's a deposit of $4,300 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 = NI; 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 a. b. C. d. Assets 25,000 Liabilities Income Statement Stockholders' Equity Revenues Expenses = Net Income 25,000 25,000 25,000