Question

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

a. Bill's collected $17,400 from customers for services related to games played in July.
b. Bil's billed a customer for $330 for a party held at the center on the last day of July. The bill is to be paid in August
c. The men's and women's bowling leagues gave Bil's advance payments totaling $3.100 for the fall season that starts in September
d. Bil's received $1,350 from credit sales made to customers last month (in June).
e. Bil's paid $2,100 to plumbers for repairing a broken pipe in the restrooms.
f. Bill's paid $2,650 for the June electricity bill and received the July bill for $3.100, which will be paid in August
g. Bl's paid $5,895 to employees for work in July
Required:
1. Prepare an income statement for Bilr's Extreme Bowling, Inc., for the month ended July 31. (This income statement would be considered preliminary because it uses unadjusted balances.) BILL'S EXTREME BOWLING, INC Income Statement
2. What s the company's net profs margin, expressed as a percent (Round your answer to 1 decimal place.) let Profit

Answer 1

BILL'S EXTREME BOWLING INC

1. Income Statement

For the month ended July 31:

Service Revenue $17,730

less Expenses:

Plumbing Repairs $2,100

Electricity 3,100

Salaries 5,895

Total expenses $11,095

Net Profit $6,635

2. Net Profit margin = Net Profit divided by Service Revenue * 100

= $6,635/$17,730 * 100

= 37.4%

Step-by-step explanation:

1) Data and Calculations:

Service Revenue:

a. Games = $17,400

b. Party = 330

Total revenue $17,730

Expenses:

e. Plumbing = $2,100

f. Electricity = 3,100

g. Salaries = 5,895

Total expenses $11,095