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Lisa Fruello and Emilie Dumont had been operating a catering business for several years. In March 2017, the partners were planning to expand by opening

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Lisa Fruello and Emilie Dumont had been operating a catering business for several years. In March 2017, the partners were planning to expand by opening a retail sales shop and decided to form the business as a corporation called Travelling Gourmet Inc. The following transactions occurred in March 2017: 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 market value of $13,000, and $1,200 in supplies. 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 from a local bank for the rest. c. Borrowed $50,000 from the local bank and signed a 5 percent, one-year note. d. Purchased for $10,830 cash, food and paper supplies that were used in March. e. Catered four parties in March for $4,200: $1,600 was billed and the rest was received in cash. f. Made and sold food at the retail store for $11,900 cash. g. Received a $420 telephone bill for March to be paid in April. h. Paid $363 in gas for the van in March. 1. Paid $6,280 in wages to employees who worked in March. J. Paid a $300 dividend from the corporation to each owner. k. Paid $50,000 in exchange for equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $20,000 cash (added to the cost of the building). Required: 182. Post the above transactions in to the appropriate T-accounts. Begbal Cash 0 Accounts Receivab! Beg, balo Required: 182. Post the above transactions in to the appropriate T-accounts Accounts Receivable Cash 0 Beg bal End, bal. End. bal. Supplies Equipment Beg. bal. Beg bal. End, bal lend bal Building Accounts Payable Beg bal. o Bog. bal. End, bal End bal. Note Payable Mortgage Payable 0 Beg bal o Bog bal End bal End, bal Contributed Capital Retained Earnings o Beg bal 0 Beg bal End. bal. End. bal. Contributed Capital Retained Earnings 0 Beg, bal 0 Beg, bal. End, bal End. bal. Food Sales Revenue Catering Sales Revenue 0 Beg bal 0 Beg, bal. End, bal End, bal Supplies Expense Utilities Expense Beg bal Beg, bal End, bal. End, bal Wages Expense Fuel Expense Beg bal. Beg, bal End, bal. End, bal. 3. Show the effects of each transaction on net earnings and cash. (Enter any decreases to account balances with a minus sign.) Effect on Net Transaction Earnings Effect on Cash d . o

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