J. Kamas and G. Charrier have been operating a catering business for several years. In March,...

 

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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 $81,000 cash from each of the two shareholders to form the corporation, in addition to $2,100 in accounts receivable, $5,500 in equipment, a van (equipment) appraised at a fair value of $13,200, and $1,250 in supplies. Gave the two owners each 520 shares of common stock with a par value of $1 per share. b. Purchased a vacant store for sale in a good location for $370,000, making a $74,000 cash down payment and signing a 10-year mortgage note from a local bank for the rest. c. Borrowed $51,000 from the local bank on a 10 percent, one-year note. d. Purchased food and paper supplies costing $10,400 in March; paid cash. e. Catered four parties in March for $4,300; $1,620 was billed and the rest was received in cash. f. Sold food at the retail store for $16,950 cash. g. Used food and paper supplies costing $10,850. h. Received a $430 telephone bill for March to be paid in April. i. Paid $373 in gas for the van in March. j. Paid $6,480 in wages to employees who worked in March. k. Paid a $310 dividend from the corporation to each owner. 1. Purchased $51,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $20,500 (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 Revenues: Income Statement (unadjusted) 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 $81,000 cash from each of the two shareholders to form the corporation, in addition to $2,100 in accounts receivable, $5,500 in equipment, a van (equipment) appraised at a fair value of $13,200, and $1,250 in supplies. Gave the two owners each 520 shares of common stock with a par value of $1 per share. b. Purchased a vacant store for sale in a good location for $370,000, making a $74,000 cash down payment and signing a 10-year mortgage note from a local bank for the rest. c. Borrowed $51,000 from the local bank on a 10 percent, one-year note. d. Purchased food and paper supplies costing $10,400 in March; paid cash. e. Catered four parties in March for $4,300; $1,620 was billed and the rest was received in cash. f. Sold food at the retail store for $16,950 cash. g. Used food and paper supplies costing $10,850. h. Received a $430 telephone bill for March to be paid in April. i. Paid $373 in gas for the van in March. j. Paid $6,480 in wages to employees who worked in March. k. Paid a $310 dividend from the corporation to each owner. 1. Purchased $51,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $20,500 (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 Revenues: Income Statement (unadjusted)