Question
The following transactions are July activities of Bennetts Bowling, Incorporated, which operates several bowling centers, offering customers lanes for games, snack bar service, and merchandise
The following transactions are July activities of Bennetts Bowling, Incorporated, which operates several bowling centers, offering customers lanes for games, snack bar service, and merchandise for sale from the pro shop.
e. Bennetts purchased $380 in food supplies for the snack bar; paid $270 in cash and owed the rest on account with the supplier.
f. Bennetts paid $3,700 on the electricity bill for June (recorded as an expense in June).
g. Bennetts paid $3,500 to employees for work in July.
h. Bennetts purchased $2,700 in insurance for coverage from August 1 to November 1.
i. Bennetts paid $1,800 to plumbers for repairing a broken pipe in the restrooms.
j. Bennetts 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.
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