Lisa Frees and Amelia Ellinger 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, Inc. The following transactions occurred in March: 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.
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.
Borrowed $50,000 from the local bank on a 10 percent, one-year note.
Purchased food and paper supplies costing 10,200 in March; paid cash.
Catered four parties in March for $4,200; $1,600 was billed and the rest was received in cash.
Sold food at the retail store for $16,900 cash; the food and paper supplies used cost $10,830. (Hint: Record the revenue effect separate from the expense effect.)
Received a $420 telephone bill for March to be paid in April.
Paid $363 in gas for the van in March.
Paid $6,280 in wages to employees who worked in March.
Paid a $300 dividend from the corporation to each owner.
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:

2. Record in the T-accounts the effects of each transaction for Traveling Gourmet, Inc., in March.