Do not give solution in image Required information[The following information applies to the questions displayed below.]Lisa Frees and Amelia Ellinger have been operating a catering business for several years. In March, the partners plan toexpand 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 $80,000 cash from each of the two shareholders to form the corporation, in addition to $2,000 inaccounts receivable, $5,300 in equipment, a van (equipment) appraised at a fair value of $13,000, and $1,200 insupplies, 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 andsigning 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; the food and paper supplies used cost $10,830. (Hint: Record two therevenue effect separate from the expense effect.)g. Received a $420 telephone bill for March to be paid in April.h. Paid $363 in gas for the van in March.L. Paid $6,280 in wages to employees who worked in March.j. Paid a $300 dividend from the corporation to each ownerk. Purchased $50,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated anddecorated the new store for $20,000 (added to the cost of the building); paid cash.Required:1. Prepare an unadjusted classified income statement in good form for the north of March.BOUQUETING

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Description: Do not give solution in image Required information[The following information applies to the questions displayed below.]Lisa Frees and Amelia Ellinger have been operating a catering business for several years. In March, the partners plan toexpand by o

The income statement is one of the financial statements which shows all income and all expenses of…

Answered: Required: 1. Prepare an unadjusted…

Business

Accounting

Required: 1. Prepare an unadjusted classified income statement in good form for the month of March.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 27P

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