Question

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

Answer 1

Answer:

A. Bill’s collected $15,600 from customers for services related to games played in July.

Dr Cash 15,600

    Cr Service revenue 15,600

B. Bill’s billed a customer for $600 for a party held at the center on the last day of July. The bill is to be paid in August.

Dr Accounts receivable 600

    Cr Service revenue 600

C. The men’s and women’s bowling leagues gave Bill’s advance payments totaling $1,850 for the fall season that starts in September.

Dr Cash 1,850

    Cr Unearned service revenue 1,850

D. Bill’s received $1,500 from credit sales made to customers last month (in June).

Dr Cash 1,500

    Cr Accounts receivable 1,500