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
