This case focuses on the following student learning objectives in this module as it relates to the course objectives (CO) described under the Getting Started - About This Course page:

1. Describe common operating transactions and select appropriate income statement account titles. (CO1, CO2)

2. Explain and apply the revenue and expense recognition principles. (CO1, CO2)

General Instructions: For this discussion board, you will have an excellent opportunity of identifying accrual basis revenues and expenses. This discussion will enable you to learn more about the Income Statement as well as a topic of your choice from the chapter.

Detailed Instructions: Initial Post due by Wednesday at 23:59 pm EST

The following transactions are July activities of Jones Recreation Inc., which operates several centers. If revenue is to be recognized in July, indicate the amount. If revenue is not to be recognized in July, explain why.

1. Jones collected $12,000 from customers for services related to games played in July.

2. Jones billed a customer for $250 for a party held at the center on the last day of July. The bill is to be paid in August.

3. The men's and women's leagues gave Jones advance payments totaling $1,500 for the fall season that starts in September.

The following transactions are July activities of Jones Recreation Inc., which operates several centers. If an expense is to be recognized in July, indicate the amount. If an expense is not to be recognized in July, explain why.

4. Jones paid $1,500 to plumbers for repairing a broken pipe in the restroom.

5. Jones paid $2,000 for the June electricity bill and received the July bill for $2,500, which will be paid in August.

6. Jones paid $5,475 to employees for work in July.