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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

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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 $82,000 cash from each of the two shareholders to form the corporation, in addition to $2,200 in accounts receivable, $5,700 in equipment, a van (equipment) appraised at a fair value of $13,400, and $1,300 in supplies. Gave the two owners each 540 shares of common stock with a par value of $1 per share. b. Purchased a vacant store for sale in a good location for $380,000, making a $76,000 cash down payment and signing a 10-year mortgage note from a local bank for the rest. c. Borrowed $52,000 from the local bank on a 10 percent. one-year note. d. Purchased food and paper supplies costing $10,600 in March; paid cash. e. Catered four parties in March for $4,400: $1,640 was billed and the rest was received in cash. f. Sold food at the retail store for $17,000 cash; the food and paper supplies used cost $10,870. (Hint: Record the revenue effect separate from the expense effect.) g. Received a $440 telephone bill for March to be paid in April. h. Paid $383 in gas for the van in March. 1. Paid $6.680 in wages to employees who worked in March. J. Paid a $320 dividend from the corporation to each owner. k. Purchased $52,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $21,000 (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. Cash Accounts Receivable Beg. Bal. Beg. Bal. End. Bal. 0 0 End. Bal. Supplies Equipment Beg. Bal. Beg. Bal. End. Bal. End. Bal. 0 Building Accounts Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. 0 Note Payable Mortgage Payable Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 Common Stock Additional Paid-in Capital Beg. Bal. Beg. Bal. End. Bal. End. Bal. 0 Retained Earnings Food Sales Revenue Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. Catering Sales Revenue Supplies Expense Beg. Bal. Beg. Bal End. Bal. 0 End. Bal. 0 Utilities Expense Wages Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. 0 Fuel Expense Beg. Bal. End. Bal

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