Chapter 3, Problem 3.4ME

Identifying Expenses

The following transactions are July activities of Craig’s Bowling. Inc., which operates several bowling centers (for games and equipment sales). If expense is to be recognized in July, indicate the expense account title and amount. If expense is not to be recognized in July, explain why.

Activity	Expense Account Title and Amount
e. Craig's provided to customers bowling merchandise inventory costing Craig’s $6,800. (See M3-3[b] for the sale related to this use of merchandise).
f. Craig’s paid $800 on the electricity bill for June (recorded as an expense in June).
g. Craig’s paid $3,500 to employees for work in July.
h. Craig’s purchased $1,500 in insurance for coverage from July 1 to October 1. (Part is an expense for July and part is a prepaid expense to be used in future months.)
i. Craig’s paid $700 to plumbers for repairing a broken pipe in the restrooms.
j. Craig’s received the July electricity bill for $900 to be paid in August.