Question
The following transactions are July activities of Craigs Bowling, Inc. a. Craigs collected $14,900 from customers for games played in July. b. Craig's sold bowling
The following transactions are July activities of Craigs Bowling, Inc.
a. Craigs collected $14,900 from customers for games played in July.
b. Craig's sold bowling merchandise inventory from its pro shop for $7,200; received $3,700 in cash and customers owed the rest on account. [The cost of goods sold (expense) related to these sales is $2,990.]
c. Craigs received $2,000 from customers who purchased merchandise in June on account.
d. The mens and ladies bowling leagues gave Craigs a deposit of $3,000 for the upcoming fall season.
e. Craigs paid $1,200 on the electricity bill for June (recorded as expense in June).
f. Craigs paid $4,200 to employees for work in July.
g. Craigs purchased $1,560 in insurance for coverage from July 1 to October 1. (Part is an expense for July and part is a prepaid expense to be used in future months.)
h. Craigs paid $1,800 to plumbers for repairing a broken pipe in the restrooms.
i. Craigs received the July electricity bill for $2,500 to be paid in August.
Prepare an income statement for Craigs Bowling, Inc., for the month of July.
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