Question

help please with

m3-3

m3-4

m3-5

m3-6

super confused

Customer deposits Expenses Inventory purchases Wages paid Cost of sales Wages expense Utilities expense Net income Net income M3-3 LO3-2, 3-3 Identifying Revenues The following transactions are July activities of Craig's Bowling, Inc., which operates several bowling centers (for games and equipment sales). If revenue is to be recognized in July, indicate the reven account title and amount. If revenue is not to be recognized in July, explain why.

Answer 1

3-3
a. Games Revenue = $15000

b. Sales Revenue = $8000

c. No revenue account is affected, since amount is collected from receivables

d. No revenue account is affected, since it is amount received in advance

3-4
e. Cost of Goods Sold = $6800

f. No expense account is affected, since bill is paid for june

g. Salaries Expense = $3500

h. Insurance Expense = $500 i.e. for 1 month of july

i. Repair Expense = $700

j. Utilities Expense = $900

3-5

	Account Titles	Debit	Credit
a	Cash	$         15,000
	Games Revenue		$         15,000
b	Cash	$            3,000
	Accounts Receivable	$            5,000
	Sales Revenue		$            8,000
c	Cash	$            4,000
	Accounts Receivable		$            4,000
d	Cash	$            2,500
	Unearned Revenue		$            2,500

3-6

	Account Titles	Debit	Credit
e	Cost of Goods Sold	$            6,800
	Inventory		$            6,800
f	Accounts Payable	$               800
	Cash		$               800
g	Salaries Expense	$            3,500
	Cash		$            3,500
h	Insurance Expense	$               500
	Prepaid Insurance	$            1,000
	Cash		$            1,500
i	Repair Expense	$               700
	Cash		$               700
j	Utilities Expense	$               900
	Accounts Payable		$               900