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The following transactions are July activities of Bennett's Bowling, Inc. a. Bennett's collected $14,400 from customers for games played in July. b. Bennett's sold bowling
The following transactions are July activities of Bennett's Bowling, Inc. a. Bennett's collected $14,400 from customers for games played in July. b. Bennett's sold bowling merchandise inventory from its pro shop for $7,100; 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 $3,500 from customers who purchased merchandise in June on account. d. The men's and ladies' bowling leagues gave Bennett's a deposit of $3,500 for the upcoming fall season. e. Bennett's provided to customers bowling merchandise inventory costing Bennett's $3,090. (Consider only the effect on cost of goods sold [expense] here.) f. Bennett's paid $1,900 on the electricity bill for June (recorded as an expense in June). g. Bennett's paid $5,200 to employees for work in July. h. Bennett's purchased $1,560 in insurance for coverage from August 1 to November 1. i. Bennett's paid $1,800 to plumbers for repairing a broken pipe in the restrooms. j. Bennett's received the July electricity bill for $2,200 to be paid in August. Prepare an unadjusted income statement for Bennett's Bowling, Inc., for the month of July. BENNETT'S BOWLING, INC. Unadjusted Income Statement For the Month of July Revenues: Games revenue $ 14,400 Sales revenue 7,100 Unearned revenue 3,500 Total revenues 25,000 Expenses: Cost of goods sold 3,090 Utilities expense 1,900 Wages expense 5,200 Repairs expense 1,800 Total expenses Net income 11,990 13,010 $
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