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Ber [7]
3 years ago
7

The following transactions are July activities of Bill’s Extreme Bowling, Inc., which operates several bowling centers.

Business
1 answer:
Softa [21]3 years ago
4 0

Answer:

                                            Income Statement  

Sales                                          $12,250  

Operating Expenses Electricity   -$2,500  

Operating Expenses Wages           -$5,475  

Repairing Expenses                   -$1,500  

Net Income                                        $2,775  

Explanation:

The income statement is one of the principal financial statement of a company, it's necessary to know if the is generating profit or losses, it keep record of all the transaction during a period of time, but not consider payment   or collection made of other period.

This statement apply the accrual criteria, only consider de transaction occurred during the period and not the momento of payment.

In this case the following operations were leaving out becuase are of other period.

  • (c) The men’s and women’s bowling leagues gave Bill’s advance payments totaling $1,500 for the fall season that starts in September.
  • (d) Bill’s received $1,000 from credit sales made to customers last month (in June).

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