Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Alpine Stables Inc. was established on April 1, 2020. The company provides stables, care for animals, and grounds for riding and showing horses. You have
Alpine Stables Inc. was established on April 1, 2020. 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 2020 are provided for your review: a Received contributions from five investors of S60,000 in cash (S12,000 each), a barn valued at $100,000, and land valued at $90,000. Each investor received 3,000 shares. b. Built a small barn for $62,000. The company paid half the amount in cash on April 1, 2020, and signed a three-year note payable for the balance. c. Provided animal care services to customers, all on credit, for $35,260. d. Rented stables to customers who cared for their own animals, and received cash payment of $13,200. e. Received from a customer $2,400 to board her horse in April, May, and June (record as deferred revenue). f. Purchased hay and feed supplies on account for $3,180 to be used in the summer. g. Paid S1,240 in cash for water utilities expense incurred in the month. h. Paid $2,700 on accounts payable for previous purchases. i. Received $10,000 from customers on accounts receivable. j. Paid $6,000 in wages to employees who worked during the month. k Purchased a one-year insurance policy for $3,600 at the end of the month. Received an electric utility bill for $1,800 for usage in April; the bill will be paid in May. m. Paid S500 cash dividend to each of the investors at the end of the month. Required: Prepare journal entries for transaction a-m
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started