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2. Record in the T-accounts the effects of each transaction for Traveling Gourmet, Incorporated, in March.

2. Record in the T-accounts the effects of each transaction for Traveling Gourmet, Incorporated, in March.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please I need help no plagiarism please 

J. Kamas and G. Charrier 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, Incorporated. The following transactions occurred in March: 1. 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 of $16,000, and $1,950 in supplies. Gave the two owners each 800 shares of common stock with a par value of $1 per share. 2. Purchased a vacant store for sale in a good location for $510,000, making a $102,000 cash down payment and signing a 10-year mortgage note from a local bank for the rest. 3. Borrowed $65,000 from the local bank on a 10 percent, one-year note. 4. Purchased food and paper supplies costing $13,200 in March; paid cash. 5. Catered four parties in March for $5,700; $1,900 was billed and the rest was received in cash. 6. Sold food at the retail store for $17,650 cash. 7. Used food and paper supplies costing $11,130. 8. Received a $570 telephone bill for March to be paid in April. 9. Paid $513 in gas for the van in March. 10. Paid $9,280 in wages to employees who worked in March. 11. Paid a $450 dividend from the corporation to each owner. 12. Purchased $65,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $27,500 (added to the cost of the building); paid cash. Required: 2. Record in the T-accounts the effects of each transaction for Traveling Gourmet, Incorporated, in March.
Transcribed Image Text:J. Kamas and G. Charrier 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, Incorporated. The following transactions occurred in March: 1. 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 of $16,000, and $1,950 in supplies. Gave the two owners each 800 shares of common stock with a par value of $1 per share. 2. Purchased a vacant store for sale in a good location for $510,000, making a $102,000 cash down payment and signing a 10-year mortgage note from a local bank for the rest. 3. Borrowed $65,000 from the local bank on a 10 percent, one-year note. 4. Purchased food and paper supplies costing $13,200 in March; paid cash. 5. Catered four parties in March for $5,700; $1,900 was billed and the rest was received in cash. 6. Sold food at the retail store for $17,650 cash. 7. Used food and paper supplies costing $11,130. 8. Received a $570 telephone bill for March to be paid in April. 9. Paid $513 in gas for the van in March. 10. Paid $9,280 in wages to employees who worked in March. 11. Paid a $450 dividend from the corporation to each owner. 12. Purchased $65,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $27,500 (added to the cost of the building); paid cash. Required: 2. Record in the T-accounts the effects of each transaction for Traveling Gourmet, Incorporated, in March.
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