Ch.3 problems - Chapter 3: Reporting Operating Results on...

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Chapter 3 : Reporting Operating Results on the Income Statement Drill Exercises M3-6 Determining the Financial Statement Effects of Operating Activities Involving Revenues The following transactions are July 2010 activities of Bill's Extreme Bowling, Inc., which operates several bowling centers. For each of the following transactions, complete the spreadsheet, indicating the amount and effect (+ for increase and – for decrease) of each transaction. Write NE if there is no effect. Include revenues as a subcategory of stockholders' equity, as shown for the first transaction, which is provided as an example. Activity Assets Liabilities Stockholder’s Equity a. Bill’s collected $12,000 from customers for games played in July. b. Bill’s billed a customer for $250 for a party held at the center on the last day of July. The bill will be paid in August c. Bill’s received $1,000 from credit sales made to customers in JUNE. d. The men’s and women’s bowling leagues gave Bill’s advance payments totaling $1,500 for the fall season that starts in September. M3-7 Determining the Financial Statement Effects of Operating Activities Involving Expenses The following transactions are July 2009 activities of Bill's Extreme Bowling, Inc., which operates several bowling centers. For each of the following transactions, complete the spreadsheet, indicating the amount and effect (+ for increase and – for decrease) of each transaction. Write NE if there is no effect. Include expenses as a subcategory of stockholders' equity, as shown for the first transaction, which is provided as an example. Activity Assets Liabilities Stockholder’s Equity e. Bill’s paid $1,500 to plumbers for repairing a broken pipe in the restrooms. f. Bill’s paid $2,000 for June electricity and received the July bill for $2,500, which will be paid in August g. Bill’s paid $5,475 to employees for work in July M 3-13 Preparing Accrual Basis Journal Entries Ltr Account Titles Debit Credit a) b) c) d) e) M 3-14 Preparing Accrual Basis Journal Entries Ltr Account Titles Debit Credit a) Acc 2013 Chapter 3 Drill Exercises, 3 rd  edition Page 1 of 14
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b) c) d) e) M 3-15 Preparing Accrual Basis Journal Entries Ltr Account Titles Debit Credit a) b) c) d) e) M 3-16 Preparing Accrual Basis Journal Entries Ltr Account Titles Debit Credit a) b) c) d) e) Acc 2013 Chapter 3 Drill Exercises, 3 rd  edition Page 2 of 14
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This note was uploaded on 01/19/2011 for the course ACC 2013 taught by Professor Noe during the Spring '08 term at The University of Texas at San Antonio- San Antonio.

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Ch.3 problems - Chapter 3: Reporting Operating Results on...

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