Question

The following transactions are July 2014 activities of Craig�s Bowling, Inc., which operates several bowling centers (for games and equipment sales).a. Craig�s collected $15,000 from customers for games played in July.b. Craig�s sold bowling equipment inventory for $8,000; received $3,000 in cash and the rest on account. [The cost of goods sold (expense) related to these sales is $6,800.]c. Craig�s received $4,000 from customers on account who purchased merchandise in June.d. The men�s and ladies� bowling leagues gave Craig�s a deposit of $2,500 for the upcoming fall season.Prepare the journal entry for the above transactions

Answer 1

Step-by-step explanation:

The journal entries are shown below:

a. Cash A/c Dr $15,000

To Games revenue A/c $15,000

(Being cash collected)

b. Cash A/c Dr $3,000

Accounts receivable A/c Dr $5,000

To Sales revenue $8,000

(Being cash received for selling of equipment)

c. Cash A/c Dr $4,000

To Account receivable $4,000

(Being cash received for merchandise sold by the company)

d. Cash A/c Dr $2,500

To Unearned revenue A/c $2,500

(Being deposit received for the upcoming fall season)