Question
Haras [1] del Caribe is a small company dedicated to developing and reproducing carrier horses of the highest genetic quality from recognized and award-winning examples
Haras [1] del Caribe is a small company dedicated to developing and reproducing carrier horses of the highest genetic quality from recognized and award-winning examples of the paso fino. Their specimens are direct descendants of champions, certified by DNA. For their gestation, they have bellies carefully selected for their qualities, including mares mothers or daughters of champions. The main income of the business comes from the rental of their horses to compete in different equestrian events. The company rarely sells its copies. The main objective of Haras del Caribe is to prepare the horses to rent them to different delegations that participate in horse riding competitions. The rental income for each issue can be between $ 3,500 to $ 5,000 per event. In addition to rental income, the company generates income from other services such as: stable rental and horse care, Private classes seven days a week in the disciplines of horse riding, jumping and training for adults and children of all levels from beginners to advanced, and equino-therapy (adapted horse riding) for children with special needs. The company specializes in creating a family environment in which children and adults can observe, learn, and interact with horses. The paddock has the services of 2 trainers, both with long and successful careers as jockeys and instructors, and 4 maintenance employees. DATA for Parts 3: Haras del Caribe started operations 2 years ago and as of December 31, 2020, the company had 60 cages (mangers) of 10'X10 'in the stables, 3 riding stables [2] outdoors to train the horses and to offer the classes. In addition, it had the following copies:
Cost acquisition date useful life
2 mares 1,200 each 1/1/2019 10 years each 5 fine paso horses 2,100 each 1/1/2019 12 years each
Some of the costs associated with the business are the following:
Food (feed, forage and vitamins) - $ 200 per month for each horse. Veterinary care and vaccines - $ 195 annually for each issue. Horseshoes: $ 50 every two months for each horse (mares every three months) Maintenance staff - $ 250 per month for each issue. Trainers - $ 300 a month for each horse (mares are not trained) Insurance: $ 600 per year WEEK 3: DAILY
TRANSACTION RECORD TASK:
Prepare a journal (general journal) using Excel with 4 columns with the following titles: date, accounts, DR (debit) and CR (credit). Provide the journal entry in EXCEL (if applicable) for the transactions listed below. If a journal entry is not required, write NOT APPLICABLE. When completing this part, any additional assumptions that have been made should be included in the explanation of the journal entry. Write your entries in the order in which they are presented in the following list. All kennel costs incurred during 2020 (horse care and training costs must be recorded with a single annual entry at the end of the year) The following transactions occurred during 2020: On January 2, 2020, Haras del Caribe acquired a new paso fino horse for $ 3,500. Additionally, the kennel paid $ 175 in veterinary costs to confirm the horse's health before final purchase and $ 50 for insurance and transportation. A useful life of 10 years was estimated for this specimen. On January 5, 2020, the company completed the construction of a fourth arena, the first under a roof, at a cost of $ 1,700. A useful life of 15 years with no residual value was estimated. The construction of the arena had begun in October of the previous year. This riding school will allow training the horses and offering classes during periods of rain. On June 27, 2020, one of the mares gave birth to a foal. The costs related to the gestation of the animal were approximately $ 2,500 which included the costs of a veterinarian to attend the birth. On July 5, the second mare gave birth to another foal.
The following tickets can be delivered in week 4 Foals do not reach maturity until 4 calendar years when they cease to be foals, at this age they will begin to be tamed and mounted. Unfortunately one of the foals died unexpectedly on August 9, 2020. The company paid $ 200 to have the foal properly buried. On August 29, 2020, the company sold 1 of its mares to another stud farm. The buyer paid $ 400 for the mare and $ 50 to an insurer to transport the mare. On December 25, 2020, the company exchanged one of its original horses plus $ 700 in exchange for a mare (mother of 3 champion Paso Fino horses). At the time of the transaction, Haras del Caribe's horse had a fair value of $ 2,200. All necessary adjustment entries as of December 31, 2020 (HINT: remember that the company started operations two years ago). ENTER # 3 - REQUIRED: Deliver general journal in Excel with the record of the transactions listed above. You have to use formulas whenever possible (this allows the teacher to understand where the computations came from: to add use +, to subtract use -, to multiply use * and to divide use /).
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