Problem 3 15 points The following transactions are July acti

Problem 3 (15 points) The following transactions are July activities of Bill\'s Extreme Bowling, Inc. which operates several bowling center. For each of the transactions, complete the table indicating the account, amount and direction of the effect (+for increase and -for decrease) of each transaction under the accrual basis. The first transaction is provided as an example Stockholder\'s Service Revenue +16,300 Assets a Bill\'s collected $16300 from Cash +16,300 customers for services related to games played in July bBil\'s billed a customer for $680 for a party held at the center on the last day of July. The bill is to be paid in C The men\'s and women\'s bowling leagues gave Ball\'s advance payments totaling $1,400 for the fall season that Bill\'s received $2,400 froe credit sales made to customers last month (=June) e Biäll\'s paild $1,600 to plumbers for repairing a broken pipe in f Bill\'s received the Jaly electricity bill for $4,100 which will be paid in g Bill\'s paid $5,275 to for work in Prepare an income statement for Bill\'s Extreme Bowling Inc. for the month ended Jaly 31.

Solution

Transactions

Assets

Liabilities

Shareholders equity

A

cash + 16300

service revenue +16300

B

Accounts receivables +680

service revenue + 680

C-

cash +14000

Unearned revenue +1400

D

cash +2400   Accounts receivables -2400

E

cash -1600

repair expenses -1600

F

Electricity bill payable +4100

electricity expense -4100

G

cash -5275

salary expense -5275

Income statement

service revenue

16300+680

16980

less expenses

repair expense

1600

electricity expense

4100

salary expense

5275

total expenses

10975

net income

6005

Transactions	Assets	Liabilities	Shareholders equity
A	cash + 16300		service revenue +16300
B	Accounts receivables +680		service revenue + 680
C-	cash +14000	Unearned revenue +1400
D	cash +2400   Accounts receivables -2400
E	cash -1600		repair expenses -1600
F		Electricity bill payable +4100	electricity expense -4100
G	cash -5275		salary expense -5275
Income statement
service revenue	16300+680	16980
less expenses
repair expense	1600
electricity expense	4100
salary expense	5275
total expenses		10975
net income		6005