M3-7 (including the examples), prepare an income statement based on unadjusted account balances for Ben’s Extreme Bowling Center for the month ended July 31, 2011. M3-9 Identifying Revenues The following transactions are February 2009 activities of Swing Hard, a sole proprietorship owned by Doris Heald. The business offers indoor golfing lessons. If revenue is to be recognized in February, indicate the amount. If revenue is not to be recognized in February, explain why.

Activity a. Collected $15,000 from customers for lessons given in February. b. Sold a gift certificate for golf lessons for $150 cash in February. c. Received $4,000 from customers for services provided to them on credit in January. d. Collected $2,250 in advance payments for golf lessons to start in June. e. Billed a customer $125 for golf lessons given at the end of February. The customer is to pay the bill in March. Amount or Explanation