50 2 Doines Book Pint PA3-3 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Unadjusted Trial Balance, and Determining Net Income and Net Profit Margin (LO 3-1, LO 3-2, LO 3-3, LO 3-4, LO 3-5] 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 $340,000 of common stock on April 1. b. Acquired a barn for $150,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance. c. Provided $25,200 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 $19,500 on April 4 for rent earned this month. e. On April 5, received $3,000 cash from a customer to board her horse in May, June, and July (record as Deferred Revenue). Purchased and received hay and feed supplies on account on April 6 for $3,900. g. Paid $2.080 on accounts payable on April 7 for previous purchases. h. Received $2,640 from customers on April 8 on accounts receivable. On April 9, prepaid a two-year insurance policy for $5,100 for coverage starting in May. On April 28, paid $880 in cash for water and utilities used this month. k. Paid $15,900 in wages on April 29 for work done this month. 1. Received an electric utility bill on April 30 for $1,720 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. Complete this question by entering your answers in the tabs below. Red 1 Req 21 Req 3 Req 4A Req 4B Prey 2 of 2 # Next &P $15900 in wages dri Aph Received and unity on April 30 $1720 for usage in Aprit the bid will be peit next mon Require 1. Papere the jaanal enery for each of the above transactions 2. the action activity from requirement 1 to the 1-Accours beon All accounts begin with zero bananicies because this is t fest month of openins 3. Prepare andsted trial belance as of Apr 30 4aefert the revenues and expenses shown on the unadjusted trial bance. Besed on this information calculate preliminary met income and net prote margin 4- Determine whether the net profit margin is better or worse than the 300 percent eamed by a close compet Complete this question by entering your answers in the tabs below. 3 Determine whether the net profit margin is better or worse than the 30.0 persented by a sloe comp C Required the entry for each of the above transaction 2. the action activity from requirement to the T.Accounts below. At accounts beg with o balances becse is the And month of opens Prepare and dance of 30 Refer to the revenues and expenses shows on the unadjusted trial balance Based on mis amation, cecute pry income and et pratt mange 4. Deere whether the nut joft margin is better or worse that the 300 percent eaned by e close competor Complete this quest by entering your answers in the tabs below Refer Cash Accounts Receivable Supplies Prepaid Insurance Buildings Accounts Payable Deferred Revenue Notes Payable (long-term) Common Stock Service Revenue Rent Revenue Utities Expense Salanes and Wages Expense Total Debit Credit $ $