July 1 Cost of Goods Sold Expense E SE 6800 e Inventory A 6800 Cost of

July 1 cost of goods sold expense e se 6800 e

This preview shows page 57 - 65 out of 65 pages.

July 1 Cost of Goods Sold Expense (+E, -SE) 6,800 (e) Inventory (-A) 6,800 Cost of inventory sold e. Craig’s sold bowling merchandise costing $6,800 (the sale related to the use of this merchandise is in M3-3b above) (e) 6,800 Inventory 6,800 (e) 4,000 (c) (c) 4,000
Image of page 57
3-59 Cash (a) 15,000 Unearned Revenue (a liability acct) 2,500 (d) July 1 Cash (+A) 2,500 (d) Unearned Revenue ( +L) 2,500 Received deposit for Fall leagues (b) 3,000 Acct Receivable (b) 5,000 4,000 (c) (c) 4,000 (d) 2,500 d. The men’s and ladies’ bowling leagues gave Craig’s a deposit of $2,500 for the upcoming fall season.
Image of page 58
3-60 Cash (a) 15,000 (b) 3,000 (c) 4,000 (d) 2,500 Account Payable (f) 800 July 1 Account Payable (-L) 800 (f) Cash ( -A) 800 Paid off electricity bill (f) 800 xx Beg Bal f. Craig’s paid $800 on the electricity bill for June (recorded as an expense in June); (not part of this problem but what was the J/E for June)? June Electricity Expense 800 Account Payable (+L) 800 Electricity bill related to month of June Note: June Income Statement
Image of page 59
3-61 Cash (a) 15,000 (b) 3,000 (c) 4,000 (d) 2,500 July 1 Wage Expense (+E, -SE) 3,500 (g) Cash(-A) 3,500 Employee wages July 31 Prepaid Insurance (+A) 1,000 (h) Insurance Expense (+E, -SE) 500 Cash ( -A) 1,500 Paid insurance for current month and 2 additional (prepaid) months Insurance Expense Prepaid Insurance (h) 1,000 (f) 800 (g) 3,500 (h) 1,500 (h) 500 Wage Expense (g) 3,500 g. Craig’s paid $3,500 to employees for work in July. h. Craig’s purchased $1,500 in insurance for coverage from July 1 to October 1.
Image of page 60
3-62 Cash (a) 15,000 (b) 3,000 (c) 4,000 (d) 2,500 July 1 Repair Expense (+E, -SE) 700 (i) Cash(-A) 700 Plumber expense July 1 Utilities Expense (+E, -SE) 900 (j) Account Payable ( +L) 900 Electricity expense for July Utilities Expense Repair Expense (i) 700 (f) 800 (g) 3,500 (h) 1,500 (i) 700 (j) 900 Account Payable 900 (j) (f) 800 i. Craig’s paid $700 to plumbers for repairing a broken pipe in the restrooms. j. Craig’s received the July electricity bill for $900 to be paid in August.
Image of page 61
3-63 M3 9: Income Statement Craig ’s Bowling, Inc. Income Statement For the Month of July 2014 Revenues: Total revenues Expenses: Total expenses Net income
Image of page 62
3-64 Gaming Revenue 15,000 (a) Sales Revenue 8,000 (b) COGS (e) 6,800 Insurance Expense (h) 500 Wage Expense (g) 3,500 Utilities Expense Repair Expense (i) 700 (j) 900 Retained Earnings
Image of page 63
3-65 Assets Liabilities Stockholders’ Equity + Cash + Accounts Receivable + Inventory + Prepaid Expenses - Accounts Payable + - Unearned Revenue + - Gaming and Sales Revenue + + Wage Expense + Utilities Expense + COGS Expense + Insurance Expense + Repairs Expense (a) 15,000 (b) 3,000 (c) 4,000 (d) 2,500 (f) 800 (g) 3,500 (h) 1,500 (i) 700 8,000 (b) 15,000 (a) (e) 6,800 (h) 500 (g) 3,500 (i) 700 (j) 900 900 (j) (f) 800 (h) 1,000 (b) 5,000 4,000 © 2,500 (d) 6,800 (e) Beg Bal: XX Beg Bal: XX Beg Bal: XX XXX Beg Bal Beg Bal: XX XXX Beg Bal 23,000 End Bal End Bal 3,500 End Bal 900 End Bal 6,800 End Bal 500 End Bal 700
Image of page 64
3-66 M3 9: Income Statement Craig ’s Bowling, Inc. Income Statement For the Month of July 2014 Revenues: Games revenue $15,000 Sales revenue 8,000 Total revenues 23,000 Expenses: Cost of goods sold 6,800 Utilities expense 900 Wages expense 3,500 Insurance expense 500 Repairs expense 700 Total expenses 12,400 Net income $ 10,600
Image of page 65

You've reached the end of your free preview.

Want to read all 65 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes