1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
blondinia [14]
3 years ago
14

Lisa Frees and Amelia Ellinger had been operating a catering business for several years. In March 2014, the partners were planni

ng 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:
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 market 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 from a local bank for the rest.

c. Borrowed $50,000 from the local bank on a 10 percent, one-year note.
d. Purchased and used food and paper supplies costing $10,830 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. Made and sold food at the retail store for $11,900 cash.
g. Received a $420 telephone bill for March to be paid in April.
h. Paid $363 in gas for the van in March.
i. Paid $6,280 in wages to employees who worked in March.
j. Paid a $300 dividend from the corporation to each owner.
k.
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.

Compute ending balances for Cash, Accounts Receivable, Supplies, 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, and Fuel Expense.

1.
Prepare an income statement in good form for the month of March 2014. (Ignore retained earnings and 80,000 in the table just below)


2.
Operating (O), investing (I), and financing (F) activities affecting cash flows. Include the direction and invest of the effect
Business
1 answer:
Marat540 [252]3 years ago
5 0

Answer:

Explanation:

Account Name                            Debit                                                   Credit

Cash                                              $160,000

Accounts Receivable                      $2,000

Equipment                                     $ 18,300

Supplies                                         $1,200

Contributed Capital                                                                               $181,500

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 market value  of $13,000 and $1,200 in supplies.

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 from a local bank for the rest

Account Name                         Debit                                                    Credit

Building                              $360,000

Cash                                                                                                $ 72,000

 Notes Payable                                                                                $288,000

c. Borrowed $50,000 from the local bank on a 10%, one year note.

Account Name                        Debit                                                  Credit

Cash                                     $50,000

Notes Payable                                                                                  $50,000

d) Purchased and used food and paper supplies costing 10,830 in March; paid cash.

Purchase of Supplies:

Account Name                          Debit                                                Credit

Supplies                                 $10,830

Cash                                                                                                 $10,830

Account Name                         Debit                                                   Credit

Supplies Expense                 $10,830

 Supplies                                                                                              $10,830

e) Catered four parties in March for $4,200; $1,600 was billed and the rest was received in cash.

Account Name                         Debit                                                    Credit

Cash                                         $2,600

Accounts Receivable            $1,600

 Catering Revenue                                                                               $4,200

f. Made and sold food at the retail store for $11,900 cash. (assume the cost of these sales was already recorded as part of transaction d.)

Account Name                              Debit                                               Credit

Cash                                               $11,900

Food Sales Revenue                                                                          $11,900

g. Received a telephone bill for March to be paid in April.

Account Name                                 Debit                                               Credit

Telephone Expense                      $420

Telephone Payable                                                                               $420

h. Paid $363 in gas for the van in March

Account Name                             Debit                                           Credit

Gas Expense                               $363

Cash                                                                                                 $363

i. Paid $6,280 in wages to employees who worked in March.

Account Name                          Debit                                                  Credit

Wages Expense                       $6,280

Cash                                                                                                    $6,280

j. Paid a $300 dividend from the corporation to EACH owner

Account Name                                   Debit                                         Credit

Retained Earnings                              $600

Cash                                                                                                      $600

k. 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.

Account Name                       Debit                                                     Credit

Equipment                            $50,000

Building                                 $20,000

Cash                                                                                                     $70,000

2)

a  Cash flow from FINANCING ACTIVITIES

b   Cash flow from INVESTING ACTIVITIES ($72,000) and Non-Cash Investing and Financing Activity ($288,000).

c   Cash flow from FINANCING ACTIVITIES.

d   Non-Cash OPERATING ACTIVITIES.

e   Cash flow from OPERATING ACTIVITIES ($2,600); Non-Cash Operating Activity ($1,600).

f   Cash flow from OPERATING ACTIVITIES

g   Non-Cash OPERATING ACTIVITIES.

h  Cash flow from OPERATING ACTIVITIES.

i   Cash flow from OPERATING ACTIVITIES.

j   Cash flow from FINANCING ACTIVITIES.

k  Cash flow from INVESTING ACTIVITIES

You might be interested in
The basic price that equates the demand for and supply of loanable funds in the financial markets is the __________:
Helen [10]

Answer: a

Explanation:

The interest rate is the amount a lender charges for the use of assets expressed as a percentage of the principal. The interest rate is a rate of return that lenders demand for the ability to borrow their money. A loan that is considered high risk will have a higher interest rate. Interest rates are prices for loanable funds prices of funds invested, lent out or borrowed for various periods of time.

The supplier or lender of funds normally wants to earn an income and the user or borrower will generally be prepared to pay for the right to use the accumulated funds.

Interest rates apply to most lending or borrowing transactions. Individuals borrow money to purchase homes, fund projects, launch or fund businesses, or pay for college tuition.

3 0
3 years ago
These were kane's only temporary differences. in kane's 2021 income statement, the deferred portion of its provision for income
fomenos

These were Kane's best brief variations. in Kane's 2021 income statement, the deferred portion of its provision for earnings taxes must be $a hundred thirty-five,600.

An income tax is an instantaneous tax that a central authority levy on the income of its residents. The earnings Tax Act, 1961, mandates that the significant government acquire this tax. The authorities can change the income slabs and tax charges every year in its Union finances. income does now not best imply cash earned in the form of earnings.

Any Indian citizen elderly beneath 60 years is prone to pay earnings tax if their earnings exceed 2.5 lakhs. If the person is above 60 years of age and earns greater than Rs. three lakhs, they'll pay taxes to the authorities of India.

Income taxes are a source of revenue for governments. they're used to fund public services, pay authorities' responsibilities, and provide goods for residents.

Learn more about Income taxes here:

brainly.com/question/26316390

#SPJ4

5 0
1 year ago
In a market without price controls, producers charge ____ for their goods and services. This price allows producers to supply th
777dan777 [17]

Answer:

equilibrium prices

Explanation:

yeah-ya

3 0
2 years ago
Ruby, age 50, is considering going back to school. She would like to retire at age 67. She currently earns $50,000 per year. If
weeeeeb [17]

Answer:

Ruby should go to college.

Explanation:

Ruby is currently 50 years old and earning $50,000 per year.  

She would like to retire at 67.  

She is thinking of going back to college, to complete a graduate degree.

After completing a graduate degree from the college she would earn $55,000.

The total cost of a graduate degree is $75,000.  

Ruby still has 17 years to work and earn.  

Her income will increase by $5,000 after college

The increase in income earned after college until retirement

= $5,000 \times 17

= $85,000

Since the increase in income is greater than the cost of going to college, Ruby should go to college.

4 0
3 years ago
Seth is a competitive body builder. He says he has ti have his 12 oz package of protein to " feed his muscles" every day. On the
nexus9112 [7]

Answer:

1. It is perfectly inelastic

Explanation:

Elasticity of Demand is the responsiveness of demand to price change.

  • Elastic Demand > 1 ; implies demand changes proportionately more than price change
  • Inelastic Demand < 1 ; implies demand changes proportionately less than price change
  • Perfectly Elastic Demand  = ∞ ; implies demand changes infinitely to price change, so the prices are constant
  • Perfectly Inelastic Demand = 0 ; implies demand doesn't respond to price change, so quantity demanded is constant

Given : Seth body builder needs 12oz protein packet to 'feed his muscles' depicts that it is a necessity good to him. Being a necessity good, it would be demanded by Seth irrespective of price.

So, the demand is perfectly inelastic.

3 0
3 years ago
Other questions:
  • Nokia’s loss of market share of U.S. cell phone business is a result of __________
    5·1 answer
  • If an account is collected after having been previously written off:
    10·2 answers
  • All of the following are good choices to search for potential scholarships except:
    9·2 answers
  • In a Real Estate Limited Partnership, the general partner refinances an existing $5,000,000 mortgage on a $10,000,000 property t
    8·1 answer
  • Selected information from Jacklyn Hyde Corporation's accounting records and financial statements for 2021 is as follows ($ in mi
    5·1 answer
  • What is an advantage of using a comparsion method of assesment ?
    13·1 answer
  • An important sustainability issue that has received much more scrutiny in recent years is the: focus on adequate inventory level
    14·1 answer
  • Which is the most important consideration when deciding to purchase or lease a vehicle?
    5·1 answer
  • How do delivery companies track packages?
    11·1 answer
  • when output volume increases, do variable costs per unit increase, decrease, or stay the same within the relevant range of activ
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!