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: Received $83,000 cash from each of the two shareholders to form the corporation, in addition to $2,300 in accounts receivable, $5,900 in equipment, a van (equipment) appraised at a fair value of $13,600, and $1,350 in supplies. Gave the two owners each 560 shares of common stock with a par value of $1 per share. Purchased a vacant store for sale in a good location for $390,000, making a $78,000 cash down payment and signing a 10-year mortgage from a local bank for the rest. Borrowed $53,000 from the local bank on a 10 percent, one-year note. Purchased and used food and paper supplies costing $11,430 in March; paid cash. Catered four parties in March for $4,500; $1,660 was billed, and the rest was received in cash. Made and sold food at the retail store for $12,050 cash. Received a $450 telephone bill for March to be paid in April. Paid $393 in gas for the van in March. Paid $6,880 in wages to employees who worked in March. Paid a $330 dividend from the corporation to each owner. Purchased $53,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $21,500 (added to the cost of the building); paid cash.
Record in the T-accounts the effects of each transaction for Traveling Gourmet, Inc., in March. Compute ending balances
Post the entries to T-accounts as follows:
Prepare the following trial balance to check for arithmetical accuracy .
TG Inc | ||
Trial Balance | ||
March 31, 2019 | ||
Account Title | Debit | Credit |
Cash | $62,027 | |
Accounts receivable | $3,960 | |
Supplies | $1,350 | |
Equipment | $72,500 | |
Building | $411,500 | |
Accounts payable | $450 | |
Notes payable | $53,000 | |
Mortgage payable | $312,000 | |
Common stock | $1,120 | |
Additional paid-in capital | $188,030 | |
Retained earnings | $660 | |
Food sales revenue | $12,050 | |
Catering sales revenue | $4,500 | |
Supplies expense | $11,430 | |
Utilities expense | $450 | |
Wage expense | $6,880 | |
Fuel expense | $393 | |
Total | $571,150 | $571,150 |
Lisa Frees and Amelia Ellinger have been operating a catering business for several years. In March,...
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: Received $87,000 cash from each of the two shareholders to form the corporation, in addition to $2,700 in accounts receivable, $6,700 in equipment, a van (equipment) appraised at a fair value of $14,400,...
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: Received $100,000 cash from each of the two shareholders to form the corporation, in addition to $4,000 in accounts receivable, $9,300 in equipment, a van (equipment) appraised at a fair value of $17,000,...
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 $96,000 cash from each of the two shareholders to form the corporation, in addition to $3,600 in accounts receivable, $8,500 in equipment, a van (equipment) appraised at a fair value of...
Help 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 $95.000 cash from each of the two shareholders to form the corporation. In addition to $3,500 in accounts receivable, $8,300 in equipment, a van (equipment) appraised at a fair value...
Please help finish. 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 $102,000 cash from each of the two shareholders to form the corporation, in addition to $4,200 in accounts receivable, $9,700 in equipment, a van (equipment) appraised at a...
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 $103,000 cash from each of the two shareholders to form the corporation, in addition to $4,300 in accounts receivable, $9,900 in equipment, a van (equipment) appraised at a fair value of...
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 $93,000 cash from each of the two shareholders to form the corporation, in addition to $3,300 in accounts receivable, $7,900...
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 $103,000 cash from each of the two shareholders to form the corporation, in addition to $4,300 in accounts receivable, $9,900...
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 $85,000 cash from each of the two shareholders to form the corporation, in addition to $2,500 in accounts receivable, $6,300...
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...