Peter€™s Bowling Inc. operates several bowling centres for games and equipment sales. The transactions on the following page occurred in October 2014.

Required

1. For each transaction, indicate in the appropriate column the account titles that are affected and the type of account (A for asset, L for liability, R for revenue, and E for expense), and the amount of cash received or paid.

2. If a revenue or expense is to be recognized in October, indicate the amount. If a revenue or expense is not to be recognized in October, indicate why.

3. Explain why the difference between revenues and expenses is not equal to the net cash flow during October 2014.

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Amount of Revenue Earned Account Cash or Expense Incurred in October OR Why a Revenue or an Affected and Received Type of (Paid) in Account Octobr Expense Is Not Recognized (a) The bowling leagues gave Peter's a deposit of $2,600 (b) Peter's received $2,500 from customers on account (c) Peter's paid $1,900 for the September electricity bill for the upcoming fall season. who purchased merchandise in September and received the October bill for $2,200, which will be paid in November (d) Peters sold bowling equipment inventory for $7,000; received $3,000 in cash and the rest on account; cost (e) Peter's collected $13,000 from customers for games (f) Peter's paid $1,400 to plumbers for repairing a broken (g) Peters paid $4,700 to employees for work in October of sales is $4,200. played in October pipe in the washrooms. (h) Peter's purchased and paid for $1,800 in insurance for coverage from October 1 to December 31. Totals