Homework SourseThe following transactions are July 2014 activities of Craig
The following transactions are July 2014 activities of Craig’s Bowling, Inc., which operates several bowling centers (for games and equipment sales).
Craig’s sold bowling equipment inventory for $7,900; received $4,600 in cash and the rest on account. [Do not consider cost of goods sold for this question.]
For each of the following transactions, complete the tabulation, indicating the amount and net effect (+ for increase and for decrease) of each transaction. (Remember that A = L + SE, R E = NI, and NI affects SE through Retained Earnings.) The first transaction is provided as an example.
| a. | Craig’s collected $29,000 from customers for games played in July. |
| b. | Craig’s sold bowling equipment inventory for $7,900; received $4,600 in cash and the rest on account. [Do not consider cost of goods sold for this question.] |
| c. | Craig’s received $3,500 from customers on account who purchased merchandise in June. |
| d. | The men’s and ladies’ bowling leagues gave Craig’s a deposit of $3,900 for the upcoming fall season. |
Solution
Solution:
| Accounting equation | |||||||||
| Transaction | Assets | = | Liabilities | + | Stockholders Equity | Net Income | |||
| Cash | Accounts Receivables | Deposits Payable | Retained Earnings | Revenue | Expenses | ||||
| a | $29,000.00 | $29,000.00 | $29,000.00 | ||||||
| b | $4,600.00 | $3,300.00 | $7,900.00 | $7,900.00 | |||||
| c | $3,500.00 | -$3,500.00 | |||||||
| d | $3,900.00 | $3,900.00 |
