Harold's House of Hockey (HHH)has owned and operated a hockey arena near Edmonton for the past two years.HHH earns revenues by renting the rink out to hockey teams and skating clubs,and incurs typical costs needed to operate the rink.HHH's chart of accounts is reported below in alphabetical order along with the balances at the beginning of the current fiscal year (September 1)and a summary of the first month's transactions (1-6).Required:
A.Analyze the changes in this schedule for each transaction; then explain the transaction.
Transaction (1)is given below as an example:
(1)Accounts Receivable decreased $200,and Cash increased by $200.Therefore,transaction (a)was the collection of $200 cash from a customer on account.
B.Using the September 30 balances shown in column (6),prepare an income statement,statement of retained earnings,and balance sheet.

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The Answer of Harold's House of Hockey (HHH)has owned and operated a hockey arena near Edmonton for the past two years.HHH earns revenues by renting the rink out to hockey teams and skating clubs,and incurs typical costs needed to operate the rink.HHH's chart of accounts is reported below in alphabetical order along with the balances at the beginning of the current fiscal year (September 1)and a summary of the first month's transactions (1-6).Required:
A.Analyze the changes in this schedule for each transaction; then explain the transaction.
Transaction (1)is given below as an example:
(1)Accounts Receivable decreased $200,and Cash increased by $200.Therefore,transaction (a)was the collection of $200 cash from a customer on account.
B.Using the September 30 balances shown in column (6),prepare an income statement,statement of retained earnings,and balance sheet.

Harold's House of Hockey (HHH)has Owned and Operated a Hockey