[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 $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 par 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 March, paid cash. e. Catered four parties in March for $4,200, $1,600 was billed and the rest was received in cash. f. Sold food at the retail store for $16,900 cash. g. Used food and paper supplies costing $10,830. h. Received a $420 telephone bill for March to be paid in April. i. Paid $363 in gas for the van in March. j. Paid $6,280 in wages to employees who worked in March. k. Paid a $300 dividend from the corporation to each owner. 1. 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 for the month of March.
[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 $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 par 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 March, paid cash. e. Catered four parties in March for $4,200, $1,600 was billed and the rest was received in cash. f. Sold food at the retail store for $16,900 cash. g. Used food and paper supplies costing $10,830. h. Received a $420 telephone bill for March to be paid in April. i. Paid $363 in gas for the van in March. j. Paid $6,280 in wages to employees who worked in March. k. Paid a $300 dividend from the corporation to each owner. 1. 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 for the month of March.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $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 par 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 March, paid cash.
e. Catered four parties in March for $4,200, $1,600 was billed and the rest was received in cash.
f. Sold food at the retail store for $16,900 cash.
Revenues:
g. Used food and paper supplies costing $10,830.
h. Received a $420 telephone bill for March to be paid in April.
1. Paid $363 in gas for the van in March.
j. Paid $6,280 in wages to employees who worked in March.
k. Paid a $300 dividend from the corporation to each owner.
1. 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 for the month of March.
TRAVELING GOURMET, INCORPORATED
Income Statement (unadjusted)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F448da24e-3820-4c74-ab1e-12c28c12159a%2Fa65a4177-99f9-4f74-b34f-b06748160972%2Fvoxfznj_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 $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 par 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 March, paid cash.
e. Catered four parties in March for $4,200, $1,600 was billed and the rest was received in cash.
f. Sold food at the retail store for $16,900 cash.
Revenues:
g. Used food and paper supplies costing $10,830.
h. Received a $420 telephone bill for March to be paid in April.
1. Paid $363 in gas for the van in March.
j. Paid $6,280 in wages to employees who worked in March.
k. Paid a $300 dividend from the corporation to each owner.
1. 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 for the month of March.
TRAVELING GOURMET, INCORPORATED
Income Statement (unadjusted)
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