Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What am I missing? @expert This is the complete list of T accounts given in the question. J. Kamas and G. Charrier have been operating
What am I missing?
@expert This is the complete list of T accounts given in the question.
J. Kamas and G. Charrier have been operating a catering business for several years. In March, the partners plan to expand by opening a retall sales shop. They have decided to form the business as a corporation called Traveling Gourmet, Incorporated. The following transactions occurred in March: a. Recelved $80,000 cash from each of the two shareholders to form the corporation, In addition to $2000in accounts recelvable, $5,300 in equipment, a van (equipment) appralsed at a falr 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; pald cash. e. Catered four partles in March for $4,200;$1,600 was billed and the rest was recelved in cash. f. Sold food at the retall store for $16,900 cash. g. Used food and paper supplies costing $10,830. h. Recelved a $420 telephone bill for March to be paid in April. 1. Paid $363 in gas for the van in March. J. Pald $6,280 In wages to employees who worked in March. k. Paid a $300 dlvidend from the corporation to each owner. I. 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): pald cash. Required: 2. Record in the T-accounts the effects of each transaction for Traveling Gourmet, Incorporated, in MarchStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started