Required information (The following information applies to the questions displayed below] 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: a. Received $104,000 cash from each of the two shareholders to form the corporation, in addition to $4,400 in accounts receivable, $10,100 in equipment, a van (equipment) appraised at a fair value of $17,800, and $2,400 in supplies. Gave the two owners each 980 shares of common stock with a par value of $1 per share. b. Purchased a vacant store for sale in a good location for $600,000, making a $120,000 cash down payment and signing a 10-year mortgage note from a local bank for the rest. c. Borrowed $74,000 from the local bank on a 10 percent, one-year note. d. Purchased food and paper supplies costing $15,000 in March; paid cash. e. Catered four parties in March for $6,600; $2,080 was billed and the rest was received in cash. f. Sold food at the retail store for $18,100 cash. g. Used food and paper supplies costing $11,310. h. Received a $660 telephone bill for March to be paid in April. i. Paid $603 in gas for the van in March. j. Paid $11,080 in wages to employees who worked in March. k. Paid a $540 dividend from the corporation to each owner. 1. Purchased $74,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $32,000 (added to the cost of the building); paid cash. quired: Prepare an unadjusted classified income statement for the month of March.
Required information (The following information applies to the questions displayed below] 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: a. Received $104,000 cash from each of the two shareholders to form the corporation, in addition to $4,400 in accounts receivable, $10,100 in equipment, a van (equipment) appraised at a fair value of $17,800, and $2,400 in supplies. Gave the two owners each 980 shares of common stock with a par value of $1 per share. b. Purchased a vacant store for sale in a good location for $600,000, making a $120,000 cash down payment and signing a 10-year mortgage note from a local bank for the rest. c. Borrowed $74,000 from the local bank on a 10 percent, one-year note. d. Purchased food and paper supplies costing $15,000 in March; paid cash. e. Catered four parties in March for $6,600; $2,080 was billed and the rest was received in cash. f. Sold food at the retail store for $18,100 cash. g. Used food and paper supplies costing $11,310. h. Received a $660 telephone bill for March to be paid in April. i. Paid $603 in gas for the van in March. j. Paid $11,080 in wages to employees who worked in March. k. Paid a $540 dividend from the corporation to each owner. 1. Purchased $74,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $32,000 (added to the cost of the building); paid cash. quired: Prepare an unadjusted classified income statement for the month of March.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter12: Corporations: Organization, Capital Structure, And Operating Rules
Section: Chapter Questions
Problem 27P
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![Required information
[The following information applies to the questions displayed below.]
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:
a. Received $104,000 cash from each of the two shareholders to form the corporation, in addition to $4,400 in
accounts receivable, $10,100 in equipment, a van (equipment) appraised at a fair value of $17,800, and $2,400 in
supplies. Gave the two owners each 980 shares of common stock with a par value of $1 per share.
b. Purchased a vacant store for sale in a good location for $600,000, making a $120,000 cash down payment and
signing a 10-year mortgage note from a local bank for the rest.
c. Borrowed $74,000 from the local bank on a 10 percent, one-year note.
d. Purchased food and paper supplies costing $15,000 in March; paid cash.
e. Catered four parties in March for $6,600; $2,080 was billed and the rest was received in cash.
f. Sold food at the retail store for $18,100 cash.
g. Used food and paper supplies costing $11,310.
h. Received a $660 telephone bill for March to be paid in April.
i. Paid $603 in gas for the van in March.
j. Paid $11,080 in wages to employees who worked in March.
k. Paid a $540 dividend from the corporation to each owner.
1. Purchased $74,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and
decorated the new store for $32,000 (added to the cost of the building); paid cash.
equired:
Prepare an unadjusted classified income statement for the month of March.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc748e2e2-9914-4d45-8d69-12b3b3526535%2F7410a960-b623-44ea-9fb2-f7083628f5a5%2Ftk3irz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
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:
a. Received $104,000 cash from each of the two shareholders to form the corporation, in addition to $4,400 in
accounts receivable, $10,100 in equipment, a van (equipment) appraised at a fair value of $17,800, and $2,400 in
supplies. Gave the two owners each 980 shares of common stock with a par value of $1 per share.
b. Purchased a vacant store for sale in a good location for $600,000, making a $120,000 cash down payment and
signing a 10-year mortgage note from a local bank for the rest.
c. Borrowed $74,000 from the local bank on a 10 percent, one-year note.
d. Purchased food and paper supplies costing $15,000 in March; paid cash.
e. Catered four parties in March for $6,600; $2,080 was billed and the rest was received in cash.
f. Sold food at the retail store for $18,100 cash.
g. Used food and paper supplies costing $11,310.
h. Received a $660 telephone bill for March to be paid in April.
i. Paid $603 in gas for the van in March.
j. Paid $11,080 in wages to employees who worked in March.
k. Paid a $540 dividend from the corporation to each owner.
1. Purchased $74,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and
decorated the new store for $32,000 (added to the cost of the building); paid cash.
equired:
Prepare an unadjusted classified income statement for the month of March.
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