Question

Required information The following information applies to the questions displayed below) Lisa Frees and Amelia Ellinger have been operating a catering business for several years. In March, the partners plan to expand by opening a retail sales shop. They have decided to form the business as a corporation called Traveling Gourmet, Inc. The following transactions occurred in March a. Received $80,000 cash from each of the two shareholders to form the corporation. In addition to $2,000 in accounts receivable, $5,300 in equipment, a van (equipment) appraised at a fair value of $13.000, and $1.200 in supplies. Gave the two owners each 500 shares of common stock with a per value of $1 per share. b. Purchased a vacant store for sale in a good location for $360,000, making a $72,000 cash down payment and signing a 10-year mortgage note from a local bank for the rest. c Borrowed $50,000 from the local bank on a 10 percent. one-year note. d. Purchased food and paper supplies costing 10.200 in Marche paid cash. e. Catered four parties in March for $4,200 $1600 was billed and the rest was received in cash Sold food at the retail store for $16,900 cash; the food and paper supplies used cost $10,830. Mint Record two the revenue effect separate from the expense effect) g. Received a $420 telephone bill for March to be paid in April h. Paid $363 in gas for the van in March. L Paid $6.280 in wages to employees who worked in March J. Pald a $300 dividend from the corporation to each owner. k Purchased $50,000 of equipment refrigerated display cases, cabinets, tables, and chairs and renovated and decorated the new store for $20,000 (added to the cost of the building paid cash Required: 1. Prepare an unadjusted classified income statement in good for the month of March TRAVELING GOURMET, INC Income Statement (unadjusted) Revenues Total costs and expenses Prev

Answer 1

Lisa Frees and Amelia Ellinger Cash Accounts Receivable 2000 1600 160000 50000 2600 15900 72000 10200 363 6280 600 70000 69057 228500 Bal. 3600 3600 228500 3600 Supplies Equipment Bal. a. Bal. a. f. d. 1200 10200 11400 Bal. 10830 570 11400 13000 50000 63000 Bal. 63000 63000 Building Accounts Payable Bal. 420 360000 20000 380000 Bal. Bal. 380000 380000 420 420 420 Note Payable | Bal. 50000 50000 Mortgage Payable Bal. 288000 b. 288000 Bal. Bal. 50000 50000 288000 288000 Common Stock Bal. 1000 a. 1000 Additional Paid-in Capital Bal. 175200 a. 175200 175200 175200 Bal. Bal. 1000 1000 Dividends 600 Food Sales Revenue Bal. 15900 f. 15900 Bal. 600 Bal. 15900 600 600 15900 Service Revenue Supplies Expense 10830 4200 Bal. 10830 Bal. 4200 4200 10830 10830 4200 Telephone Expense 420 Bal. 420 Gas Expense 363 Bal. 363 420 420 363 363 Wages Expense 6280 Bal. 6280 6280 6280

Trial Balance For the period ending ... Particulars Debit in $ Credit in $ Cash 69057 Accounts Receivable 3600 Supplies 570 Equipment 63000 Building 380000 Accounts Payable 420 Note Payable 50000 Mortgage Payable 288000 Common Stock 1000 Additional Paid-in Capital 175200 Dividends 600 Food Sales Revenue 15900 Service Revenue 4200 Supplies Expense 10830 Telephone Expense 420 Gas Expense 363 Wages Expense 6280 Totals 534720 534720 Income Statement Unadjusted For the period ending ... Revenues: Food Sales Revenue Service Revenue Total Revenues 15900 4200 20100 Expenses: Supplies Expense Telephone Expense Gas Expense Wages Expense Net Income 10830 420 363 6280 17893 2207

Stacey's Piano Rebuilding Accounts Receivable 32000 d. Bal 7200 Cash 6400 g. 19000 i. 600 j. 850 k. 7200 2300 16500 2200 960 Bal. 32000 24800 32000 Bal. 12090 34050 34050 Bal Bal Supplies 1500 960 Bal. 2460 h. Equipment 9500 920 Bal. 10420 2460 2460 10420 10420 Bal Land 7400 Building 25300 Bal Bal. 7400 7400 7400 Bal. 25300 25300 25300 Accounts Payable 2300 Bal 9600 400 Deferred Revenue (Deposits) 3840 600 4440 4440 4440 Bal Bal 7700 10000 10000 Note Payable Common Stock Bal 48500 1600 100 Bal Bal 48500 48500 1700 1700 48500 1700 Rebuilding Fees Revenue Retained Earnings 2200 Bal 11560 19000 Bal Bal 9360 11560 19000 19000 11560 19000 Rent Revenue Wages Expense 16500 850 Bal 850 Bal 16500 850 16500 16500 Utilities Expense 400 7000 Additional Capital Bal 7820 h. 7820 820 7820 400 400 400

Trial Balance For the period ending ... Particulars Cash Accounts Receivable Supplies Land Building Equipment Accounts Payable Deferred Revenue (Deposits) Note Payable Common Stock Additional Capital Retained Earnings Rebuilding Fees Revenue Rent Revenue Wages Expense Utilities Expense Totals Debit in $ Credit in $ 12090 24800 2460 7400 25300 10420 7700 4440 48500 1700 7820 9360 19000 850 16500 400 99370 99370 Statement of Income For the period ending ... Rebuilding Fees Revenue Rent Revenue Total Revenues 19000 850 19850 Expenses: Wages Expense Utilities Expense Net Income 16500 400 16900 2950 Statement of Retained Earnings For the period ending ... Beginning Balance Net Income 11560 2950 14510 -2200 12310 Dividends Net Earnings by Cash Basis Statement of Income For the period ending ... Rebuilding Fees Revenue Rent Revenue Total Revenues 19000 850 19850 Expenses: Wages Expense Net Income 16500 16500 3350