Question
The following transactions are July activities of Craigs Bowling, Inc. Craigs collected $15,000 from customers for games played in July. Craig's sold bowling merchandise inventory
The following transactions are July activities of Craigs Bowling, Inc.
Craigs collected $15,000 from customers for games played in July.
Craig's sold bowling merchandise inventory from its pro shop for $8,000; received $3,000 in cash and customers owed the rest on account. [The cost of goods sold (expense) related to these sales is $6,800.]
Craig's received $4,000 from customers who purchased merchandise in June on account.
The mens and ladies bowling leagues gave Craigs a deposit of $2,500 for the upcoming fall season.
Craig's paid $800 on the electricity bill for June (recorded as an expense in June).
Craigs paid $3,500 to employees for work in July.
Craig's purchased $1,500 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.)
Craigs paid $700 to plumbers for repairing a broken pipe in the restrooms.
Craigs received the July electricity bill for $900 to be paid in August.
Prepare an income statement for Craigs Bowling, Inc., for the month of July.
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