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1.The following transactions are July activities of Bennetts Bowling, Incorporated, which

operateseveral bowling centers, offering customers lanes for games, snack bar service, and

merchandise for sale from the pro shop.

e. Bennetts purchased $680 in food supplies for the snack bar; paid $590 in cash and owed

the rest on account with the supplier.

f.

Bennetts paid $500 on the electricity bill for June (recorded as an expense in June).

g. Bennetts paid $3,600 to employees for work in July.

h. Bennetts purchased $1,500 in insurance for coverage from August 1 to November 1.

i.

Bennetts paid $700 to plumbers for repairing a broken pipe in the restrooms.

j.

Bennetts received the July electricity bill for $900 to be paid in August.

If expenses are not recognized in July, choose 'None' for the account affected. If expense is to be

recognized in July, indicate the expense account title and amount.

2.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.

a. Bennetts collected $23,000 from customers for games played in July.

b. Bennetts served customers food from its snack bar; received $7,900 in cash.

c. Bennetts received $4,400 from customers who purchased merchandise in June from the pro

shop on account.

d. The mens and ladies bowling leagues gave Bennetts a deposit of $2,800 for the upcoming

fall season.

For each of the above transactions, complete the tabulation, indicating the amount 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.Identifying Expenses

Expense recognition is guided by an attempt to match the costs associated with the generation of those

revenues to the same time period. The following transactions occurred in January.

1. The campus bookstore receives 500 accounting texts at a cost of $95 each. The terms indicate that

payment is due within 30 days of delivery.

2. During the last week of January, the campus bookstore sold 500 accounting texts received in (2) at a

sales price of $130 each.

3. Fucillo Hyundai, Inc., pays its salespersons $13,800 in commissions related to December

automobile sales. Answer from Fucillo's standpoint.

4. On January 31, Fucillo Hyundai, Inc., determines that it will pay its salespersons $15,560 in

commissions related to January sales. The payment will be made in early February. Answer from

Fucillo's standpoint.

5. Carousel Center Mall had janitorial supplies costing $3,500 in storage. An additional $2,600 worth

of supplies was purchased during January. At the end of January, $1,400 worth of janitorial supplies

remained in storage.

6. Wang Company paid $4,800 for a fire insurance policy on January 1. The policy covers 12 months

beginning on January 1. Answer from Wang's point of view.

7. Hass Company, a farm equipment company, receives its phone bill at the end of January for $154

for January calls. The bill has not been paid to date.

8. Phillips-Van Heusen Corporation, manufacturer of Izod, Arrow, Van Heusen, and Calvin Klein

shirts, completes production of 450 men's shirts ordered by Macy's department stores at a cost of

$10 each and delivers the order. Answer from Phillips-Van Heusen's standpoint.

Required:

Required: For each of the transactions, if an expense is to be recognized in January, indicate the expense

account title and the amount. If an expense is not to be recognized in January, indicate why.