[The following information applies to the questions displayed below.] J. Kamas and G. Charrier 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, Incorporated. 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 in accounts receivable, $5,300 in equipment, a van (equipment) appraised at a fair 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, 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. g. Used food and paper supplies costing $10,830. h. Received a $420 telephone bill for March to be paid in April. i. Paid $363 in gas for the van in March. j. Paid $6,280 in wages to employees who worked in March. k. Paid a $300 dividend from the corporation to each owner. 1. 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); paid cash. Required: 1. Prepare an unadjusted classified income statement for the month of March.
[The following information applies to the questions displayed below.] J. Kamas and G. Charrier 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, Incorporated. 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 in accounts receivable, $5,300 in equipment, a van (equipment) appraised at a fair 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, 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. g. Used food and paper supplies costing $10,830. h. Received a $420 telephone bill for March to be paid in April. i. Paid $363 in gas for the van in March. j. Paid $6,280 in wages to employees who worked in March. k. Paid a $300 dividend from the corporation to each owner. 1. 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); paid cash. Required: 1. Prepare an unadjusted classified income statement for the month of March.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 1BD
Related questions
Question
![Required information
[The following information applies to the questions displayed below]
J. Kamas and G. Charrier 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,
Incorporated. 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 in
accounts receivable, $5,300 in equipment, a van (equipment) appraised at a fair 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, 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.
Revenues:
g. Used food and paper supplies costing $10,830.
h. Received a $420 telephone bill for March to be paid in April.
1. Paid $363 in gas for the van in March.
j. Paid $6,280 in wages to employees who worked in March.
k. Paid a $300 dividend from the corporation to each owner.
1. 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); paid cash.
Required:
1. Prepare an unadjusted classified income statement for the month of March.
TRAVELING GOURMET, INCORPORATED
Income Statement (unadjusted)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F448da24e-3820-4c74-ab1e-12c28c12159a%2Fa65a4177-99f9-4f74-b34f-b06748160972%2Fvoxfznj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below]
J. Kamas and G. Charrier 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,
Incorporated. 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 in
accounts receivable, $5,300 in equipment, a van (equipment) appraised at a fair 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, 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.
Revenues:
g. Used food and paper supplies costing $10,830.
h. Received a $420 telephone bill for March to be paid in April.
1. Paid $363 in gas for the van in March.
j. Paid $6,280 in wages to employees who worked in March.
k. Paid a $300 dividend from the corporation to each owner.
1. 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); paid cash.
Required:
1. Prepare an unadjusted classified income statement for the month of March.
TRAVELING GOURMET, INCORPORATED
Income Statement (unadjusted)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,