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Need all the answers from 1 to 4b plus the Taccounts should be made as shown above. Spicewood Stables, Inc., was established in Dripping Springs,
Need all the answers from 1 to 4b plus the Taccounts should be made as shown above.
Spicewood Stables, Inc., 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 $260,000 of common stock on April 1. b. Acquired a barn for $147,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance. c. Provided $20,600 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 $23,000 on April 4 for rent earned this month. e. On April 5, received $2,550 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 $3,350. g. Paid $3,380 on accounts payable on April 7 for previous purchases. h. Received $1,420 from customers on April 8 on accounts receivable. i. On April 9, prepaid a two-year insurance policy for $4,300 for coverage starting in May. j. On April 28, paid $1,210 in cash for water and utilities used this month. k. Paid $15,100 in wages on April 29 for work done this month. 1. Received an electric utility bill on April 30 for $2,350 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. 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, Caah Accounts Receivable Beg. Bal Beg. Bal (a) End, Bal (d) Supplies Prepaid Insurance Beg. Bal Beg. Bal End. Bal End. Bal Building Accounts Payable Beg. Bal Beg. Bal End. Bal End. Bal Deferred Revenue Notes Payable (long-term) Beg. Bal Beg. Bal End. Bal End. Bal Common Stock Service Revenue Beg. Bal Beg. Bal End. Bal End. Bal Rent Revenue Utilities Expense Beg. Bal Beg. Bal End. Bal End. Bal Salaries and Wages Expense Beg. Bal End. BalStep by Step Solution
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