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 $2,100 in cash and customers owed the rest on account. [The cost of goods sold (expense) related to these sales is $3,290.] Craigs received $1,900 from customers who purchased merchandise in June on account. The mens and ladies bowling leagues gave Craigs a deposit of $1,700 for the upcoming fall season. Craigs paid $1,700 on the electricity bill for June (recorded as expense in June). Craigs paid $4,900 to employees for work in July. 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.) Craigs paid $1,800 to plumbers for repairing a broken pipe in the restrooms. Craigs received the July electricity bill for $2,200 to be paid in August. Prepare an income statement for Craigs Bowling, Inc., for the month of July.
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