E3-15 Analyzing the Effects of Transactions in T-Accounts L03-4 Lisa Frees and Amella 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 $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, and $1,550 in supplies. Gave the two owners each 640 shares of common stock with a par value of $1 per share. b. Purchased a vacant store for sale in a good location for $430,000, making a $86,000 cash down payment and signing a 10-year mortgage from a local bank for the rest. c. Borrowed $57,000 from the local bank on a 10 percent, one-year note d. Purchased and used food and paper supplies costing $12,230 in March; paid cash. e. Catered four parties in March for $4,900, 51740 was billed, and the rest was received in cash. Made and sold food at the retail store for $12,250 cash 9. Received a $490 telephone bill for March to be paid in April h. Pald $433 in gas for the van in March 1. Pald $7,680 in wages to employees who worked in March J. Pald a $370 dividend from the corporation Teach owner. k Purchased $57,000 of equipment refrigerato display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $23,500 (added to the cost of the building paid cash Required: 2. Record in the T-accounts the effects of each transaction for Traveling Gourmet, Inc., in March Compute ending balances Cash Beg Bal (a) (c) re 100 174,000 57.000 3,160 12.250 Accounts Recelvable Beg. Bal. (a) 2,700 (o 1.740 86.000 12.230 id) 433(h) 7,68010) 7400 80,500k) End. Bal. 4.4401 End. Bal 58,827 Supplies Equipment Beg. Bal 1,550 Beg, Bali (@) ik) 21,100 57,000 End. Bal 1.550 End, Bal 78,100 Accounts Payable Building Beg. Bal D 430,000 ik) 23,500 Beg Bal. 490 (9 End. Bal. 453,500 End. Bal 490 Note Payable Mortgage Payable Beq. Bal Beg Bal 57,000fc) 344.000 ( DE End. Bal 57,000 End. Bai 344,000