The following transactions are July activities of Bills Extreme Bowling, Incorporated, which operates several bowling centers.

Bills collected $$12,000$ from customers for services related to games played in July.

Bills 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 mens and womens bowling leagues gave Bills advance payments totaling $$1,500$ for the fall season that starts in September.

Bills received $$1,000$ from credit sales made to customers last month $($in June$).$

Bills paid $$1,500$ to a plumbing company on the day of repairing a broken pipe in the restrooms.

Bills paid $$2,000$ for the June electricity bill and received the July bill for $$2,500,$ which will be paid in August.

Bills paid $$5,475$ to employees for work in July.

Required:

Prepare an income statement for Bills Extreme Bowling, Incorporated, for the month ended July $31.($This income statement would be considered preliminary because it uses unadjusted balances.$)$

What is the companys net profit margin, expressed as a percent?

 

Answer rating: 100% (QA)

Answer Based on the given transactions here are the journal entries for Bills Extreme Bowling Incorp... View the full answer