Question

The following transactions are July activities of Bennett’s Bowling, Incorporated, which operates several bowling centers, offering customers lanes for games, snack bar service, and merchandise for sale from the pro shop.

1. Bennett’s collected $15,000 from customers for games played in July.
2. Bennett’s served customers food from its snack bar; received $800 in cash.
3. Bennett’s received $400 from customers who purchased merchandise from the pro shop in June on account.
4. The men’s and ladies’ bowling leagues gave Bennett’s a deposit of $2,500 for the upcoming fall season.
If revenue is not recognized in July, choose 'None' for the account affected. If revenue is to be recognized in July, indicate the revenue account title and amount.

Answer 1

Transaction 1: Games Revenue $15,000, Transaction 2: Snack Bar Revenue $800, Transaction 3: None, Transaction 4: None

Step-by-step explanation:

Transaction 1:

The revenue account affected is Games Revenue and the amount is $15,000. Revenue is recognized in July because the center collected $15,000 from customers for games played in July.

Transaction 2:

The revenue account affected is Snack Bar Revenue and the amount is $800. Revenue is recognized in July because Bennett's served customers food from its snack bar and received $800 in cash.

Transaction 3:

None. The $400 received from customers who purchased merchandise from the pro shop in June on account does not belong to July activities and revenue is already recognized in June.

Transaction 4:

None. The deposit of $2,500 for the upcoming fall season is not revenue and should not be recognized in July.