t-accounts and ending balances
please help me with these questions, (t-accounts and ending balances)
Analyzing the Effects of Transactions in T-Accounts Lisa Frees and Amelia Ellinger had been operating a catering business for several years. In March 2014, the partners were planning to expand by opening a retail sales shop and decided to form the business as a corporation called Traveling Gourmet, Inc. The following transactions occurred in March 2014: 1. 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. 2. 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. 3. Borrowed $50,000 from the local bank on a 10 percent, one-year note. 4. Purchased and used food and paper supplies costing $10,830 in March; paid cash. 5. Catered four parties in March for $4,200; $1,600 was billed, and the rest was received in cash. 6. Made and sold food at the retail store for $11,900 cash. 7. Received a $420 telephone bill for March to be paid in April. 8. Paid $363 in gas for the van in March. 9. Paid $6,280 in wages to employees who worked in March. 10. Paid a $300 dividend from the corporation to each owner. 11. 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. 12. Sold Equipment with a cost of $12,000 for $15,000 cash. 13. Paid $2,000 for interest on notes payable. 14. Bought an investment on March 1 st for $85,000 15. Received interest on investment of $1,500. 16. Income taxes are 20%. Required: 1. Set up appropriate T-accounts for Cash, Accounts Receivable, Supplies, Investment, Equipment, Building, Accounts Payable, Note Payable, Mortgage Payable, Common Stock, Additional Paid-in Capital, Retained Earnings, Food Sales Revenue, Catering Sales Revenue, Supplies Expense, Utilities Expense, Wages Expense, Fuel Expense, interest expense, gain on sale of equipment and investment income. 2. Record in the T-accounts the effects of each transaction for Traveling Gourmet, Inc., in March. Identify the amounts with the numbers starting with ( 1 ). Compute ending balances. 3. Prepare an income statement to determine the net income.(use proper format)
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Posted 08 Dec 2017 02:12 PM
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