The following transactions are July activities of Bill’s Extreme Bowling, Inc., which operates several bowling centers. Bill’s collected $12,000 from customers for services related to games played in July.Bill’s billed a customer for $250 for a party held at the center on the last day of July. The bill is to be paid in August.The men’s and women’s bowling leagues gave Bill’s advance payments totaling $1,500 for the fall season that starts in September.Bill’s received $1,000 from credit sales made to customers last month (in June).Bill’s paid $1,500 to plumbers for repairing a broken pipe in the restrooms.Bill’s paid $2,000 for the June electricity bill and received the July bill for $2,500, which will be paid in August.Bill’s paid $5,475 to employees for work in July. Required:Prepare an income statement for Bill’s Extreme Bowling, Inc., for the month ended July 31. (This income statement would be considered “preliminary” because it uses unadjusted balances.)What is the company’s net profit margin, expressed as a percent.

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Description: The following transactions are July activities of Bill’s Extreme Bowling, Inc., which operates several bowling centers. Bill’s collected $12,000 from customers for services related to games played in July.Bill’s billed a customer for $250 for a party

Income statement for the month of July of B Company:

Answered: The following transactions are July…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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

Bill’s collected $12,000 from customers for services related to games played in July.
Bill’s billed a customer for $250 for a party held at the center on the last day of July. The bill is to be paid in August.
The men’s and women’s bowling leagues gave Bill’s advance payments totaling $1,500 for the fall season that starts in September.
Bill’s received $1,000 from credit sales made to customers last month (in June).
Bill’s paid $1,500 to plumbers for repairing a broken pipe in the restrooms.
Bill’s paid $2,000 for the June electricity bill and received the July bill for $2,500, which will be paid in August.
Bill’s paid $5,475 to employees for work in July.

Required:

Prepare an income statement for Bill’s Extreme Bowling, Inc., for the month ended July 31. (This income statement would be considered “preliminary” because it uses unadjusted balances.)
What is the company’s net profit margin, expressed as a percent.

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