M3-7 (Algo) Determining the Financial Statement Effects of Operating Activities Involving Expenses LO3-4 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. e. Bennett's purchased $580 in food supplies for the snack bar; paid $470 in cash and owed the rest on account with the supplier. f. Bennett's paid $2,100 on the electricity bill for June (recorded as an expense in June). g. Bennett's paid $4,100 to employees for work in July. h. Bennett's purchased $3,900 in insurance for coverage from August 1 to November 1. i. Bennett's paid $3,300 to plumbers for repairing a broken pipe in the restrooms. j. Bennett's received the July electricity bill for $3,700 to be paid in August. For each of the above transactions, complete the tabulation, indicating the amount and effect 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. Balance Sheet Income Statement Transaction Assets Liabilities Stockholders' Equity Revenues Expenses Net Income e. 110 = 110 + f. = + + g. h. i. j. + +