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 provlded for your revlew. a. Recelved contributions from Investors and issued $150,000 of common stock on April 1 b. Acquired a barn for $205,000. On April 2. the company pald half the amount in cash and signed a three-year note payable for the balance. c. Provided $23,500 in animal care services for customers on April 3. all on credit. d. Rented stables to customers who cared for their own anlmals; recelved cash of $22.000 on April 4 for rent earned this month. e. On April 5, recelved $1.550 cash from a customer to board her horse in May. June, and July (record as Deferred Revenue). f Purchased and recelved hay and feed supplies on account on April 6 for $3.200. g. Paid $1720 on accounts payable on April 7 for previous purchases. h. Recelved $1,820 from customers on April 8 on accounts recelvable. LOn April 9. prepald a two-year Insurance policy for $4,600 for coverage starting in May. J. On April 28. pald $100 in cash for water and utilitles used this month. k. Paid $6.500 In wages on April 29 for work done this month. L. Recelved an electric utility bill on April 30 for $2.260 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.
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 provlded for your revlew. a. Recelved contributions from Investors and issued $150,000 of common stock on April 1 b. Acquired a barn for $205,000. On April 2. the company pald half the amount in cash and signed a three-year note payable for the balance. c. Provided $23,500 in animal care services for customers on April 3. all on credit. d. Rented stables to customers who cared for their own anlmals; recelved cash of $22.000 on April 4 for rent earned this month. e. On April 5, recelved $1.550 cash from a customer to board her horse in May. June, and July (record as Deferred Revenue). f Purchased and recelved hay and feed supplies on account on April 6 for $3.200. g. Paid $1720 on accounts payable on April 7 for previous purchases. h. Recelved $1,820 from customers on April 8 on accounts recelvable. LOn April 9. prepald a two-year Insurance policy for $4,600 for coverage starting in May. J. On April 28. pald $100 in cash for water and utilitles used this month. k. Paid $6.500 In wages on April 29 for work done this month. L. Recelved an electric utility bill on April 30 for $2.260 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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 provlded for your revlew.
a. Recelved contributions from Investors and Issued $150,000 of common stock on April 1.
b. Acquired a barn for $205,000. On Aprıl 2, the company pald half the amount in cash and signed a three-year note payable for the
balance.
c. Provided $23,500 In animal care services for customers on April 3, all on credit.
d. Rented stables to customers who cared for their own animals; recelved cash of $22.000 on April 4 for rent eaned this month.
e. On April 5. recelved $1,550 cash from a customer to board her horse in May. June, and July (record as Deferred Revenue).
f. Purchased and recelved hay and feed supplies on account on April 6 for $3,200.
g. Paid $1,720 on accounts payable on April 7 for prevlous purchases.
h. Recelved $1,820 from customers on April 8 on accounts recelvable.
1. On April 9. prepald a two-year Insurance policy for $4,600 for coverage starting in May.
J. On April 28. pald $1,100 in cash for water and utilitles used this month.
k. Paid $6.500 in wages on April 29 for work done this month.
I. Recelved an electric utility bill on April 30 for $2.260 for usage in April; the bill will be pald 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.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2
Reg 3
Req 4A
Reg 48
Prepare an unadjusted trial balance as of April 30.
SPICEWOOD STABLES, INCORPORATED
Unadjusted Trial Balance
Debit
Credit
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Buildings
Accounts Payable
Deferred Revenue
Notes Payable (long-term)
Common Stock
Service Revenue
Rent Revenue
Utilities Expense
Salaries and Wages Expense
Total
< Req 2
Req 4A >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 5 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education