Problem

Determining the Financial Statement Effects of Operating Activities Involving ExpensesThe...

Determining the Financial Statement Effects of Operating Activities Involving Expenses

The following transactions are July 2011 activities of Craig's Bowling, Inc., which operates several bowling centers (for games and equipment sales). For each of the following transactions, complete the tabulation, indicating the amount and effect (+ for increase and — for decrease) of each transaction. (Remember that A = L + SE. R - E = NI. and NI affects SE through Retained Earnings.) Write NE if there is no effect. The first transaction is provided as an example.

 

BALANCE SHEET.

INCOME STATEMENT.

Transaction.

Assets.

Liabilities.

Stockholders' Equity.

Revenues.

Expenses.

Net Income.

 e. Craig's sold bowling merchandise costing $3.890. [The sale related to the use of this merchandise is in M3-3t.J

−3.890

NE

−3.890

NE

+ 3.890

−3.890

 f. Craig's paid $1.900 on the

electricity bill for June (recorded as expense in June).

 

 

 

 

 

 

 y. Craig's paid 54.700 to employees for work in July.

 

 

 

 

 

 

 h. Craig's purchased SI.800 in insurance for coverage from July 1 to October 1.

 

 

 

 

 

 

 i. Craig's paid SI.400 to plumbers for repairing a broken pipe in the restrooms.

 

 

 

 

 

 

 j. Craig's received the July electricity bill for $2.600 to be paid in August.

 

 

 

 

 

 

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search