Part 1: Received contributions from investors and issued \$170,000 of common stock on April 1. Record the transaction.Part 2: Acquired a barn for $233,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance. Record the transaction.Part 3: Provided $18,500 in animal care services for customers on April 3, all on credit. Record the transaction.Part 4: Rented stables to customers who cared for their own animals; received cash of \$17, on April 4 for rent earned this month. Record the transaction.Part 5: On April 5, received $3,650 cash from a customer to board her horse in May June, and July (record as Deferred Revenue). Record the transaction.Part 6: Purchased and received hay and feed supplies on account on April 6 for \$4,400 Record the transaction.Part 7: Paid \$1,760 on accounts payable on April 7 for previous purchases . Record the transaction.Part 8: Received \$1,340 from customers on April 8 on accounts receivable. Record the transaction . ### Spicewood Stables, Incorporated: Transaction Review for April**Introduction:**Spicewood Stables, Incorporated, was established in Dripping Springs, Texas, on April 1. The company provides stables, care for animals, and grounds for riding and showing horses. As the newly hired assistant controller, you are tasked with reviewing and recording the following transactions for the month of April. **Transactions Overview:**a. **Capital Investments:** - **Date:** April 1 - **Transaction:** Received $170,000 from investors and issued common stock.b. **Asset Acquisition:** - **Date:** April 2 - **Transaction:** Acquired a barn for $233,000. Paid half in cash and signed a three-year note payable for the balance.c. **Service Revenue:** - **Date:** April 3 - **Transaction:** Provided $18,500 in animal care services on credit to customers.d. **Stables Rental:** - **Date:** April 4 - **Transaction:** Rented stables to customers who care for their own animals. Received $17,000 in cash for rent for April.e. **Deferred Revenue:** - **Date:** April 5 - **Transaction:** Received $3,650 from a customer to board a horse for May, June, and July. Recorded as Deferred Revenue.f. **Supplies Purchase:** - **Date:** April 6 - **Transaction:** Purchased and received hay and feed supplies on account for $4,400.g. **Payment on Account:** - **Date:** April 7 - **Transaction:** Paid $1,760 on accounts payable.h. **Customer Receipts:** - **Date:** April 8 - **Transaction:** Received $1,340 from customers on accounts receivable.i. **Prepaid Insurance:** - **Date:** April 9 - **Transaction:** Prepaid a two-year insurance policy for $5,000 starting in May.j. **Utility Expense:** - **Date:** April 28 - **Transaction:** Paid $1,700 in cash for water and utilities used in April.k. **Wages Payment:** - **Date:** April 29 - **Transaction:** Paid $14,300 in wages for work ### Journal Entry Transactions for AprilPrepare the journal entry for each of the below transactions. (If no entry is required, write "No Entry Required" in the first account field.)#### Transactions1. **Received $3,936 from customers on April 8 on accounts receivable.** - Recorded entry: Debit Cash and Credit Accounts Receivable.2. **On April 9, prepaid a two-year insurance policy for $5,000 for coverage starting in May.** - Recorded entry: Debit Prepaid Insurance and Credit Cash.3. **On April 28, paid $1,700 in cash for water and utilities used this month.** - Recorded entry: Debit Utilities Expense and Credit Cash.4. **Paid $14,300 in wages on April 29 for work done this month.** - Recorded entry: Debit Wages Expense and Credit Cash.5. **Received an electric utility bill on April 30 for $2,120 for usage in April; the bill will be paid next month.** - Recorded entry: Debit Utilities Expense and Credit Accounts Payable.#### Interface Elements- A **View transaction list** button is visible, indicating the feature to review all transactions.- There's an indication that a journal entry can be **recorded, cleared, or viewed** with dedicated buttons: - **Record entry**: To log the journal entry. - **Clear entry**: To clear or reset the entry fields. - **View general journal**: To review recorded entries in the general journal.#### Notes- The green circle indicates that a journal entry has been entered successfully.### Key Concepts:- **Debit and Credit**: Fundamental concepts in accounting where debits and credits should balance in each transaction.- **Prepaid Expenses**: Payments made in advance for benefits over future periods.- **Accounts Receivable and Payable**: Represents money owed to the business and money the business owes, respectively.- **Expense Recognition**: Recording expenses when they are incurred, not necessarily when they are paid. Understanding these entries helps in maintaining accurate financial records, ensuring the integrity of financial statements.

Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Spicewood Stables, Incorporated, was established in Dripping Springs, Texas, on April 1. The company provides stables, care for animals, and grounds for riding and showing horses. You have been hired as the new assistant controller. The following transactions for April are provided for your review. a. Received contributions from investors and issued $170,000 of common stock on April 1. b. Acquired a barn for $233,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance. c. Provided $18,500 in animal care services for customers on April 3, all on credit. d. Rented stables to customers who cared for their own animals; received cash of $17,000 on April 4 for rent earned this month. e. On April 5, received $3,650 cash from a customer to board her horse in May, June, and July (record as Deferred Revenue). f. Purchased and received hay and feed supplies on account on April 6 for $4,400. g. Paid $1,760 on accounts payable on April 7 for previous purchases. h. Received $1,340 from customers on April 8 on accounts receivable. i. On April 9, prepaid a two-year insurance policy for $5,000 for coverage starting in May. j. On April 28, paid $1,700 in cash for water and utilities used this month. k. Paid $14,300 in wages on April 29 for work done this month. 1. Received an electric utility bill on April 30 for $2,120 for usage in April; the bill will be paid next month. Required: 1. Prepare the journal entry for each of the above transactions. 2. Post the transaction activity from requirement 1 to the T-Accounts below. All accounts begin with zero balances because this is the first month of operations. 3. Prepare an unadjusted trial balance as of April 30. 4-a. Refer to the revenues and expenses shown on the unadjusted trial balance. Based on this information, calculate preliminary net income and net profit margin. 4-b. Determine whether the net profit margin is better or worse than the 30.0 percent earned by a close competitor.