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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

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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 estabilished in Dripping Springs, Texas, on Aprill 1. The company provides stables, care for animals, and grounds for riding and showing horses. You have been hired as the new assistant controliot. The following transactions for April are provided for your review. a. Recelved contributions from investors and lssued $280,000 of common stock on Apral 1 . b. Acquired a barn for $206,000. On April 2, the company paid half the amount in cash and signed a three-ytar note payable for the balance. c. Provided $17,200 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 $12,500 on April 4 for rent eamed this month. e On April 5, recelved $3,600 cash from a customer to board her horse in May. June, and July (record as Deferred Revenuel. 6. Purchased and recelved hay and feed supplies on account on Aprili 6 for $5.150. g. Paid $1,960 on accounts payoble on April 7 for previous purchases. h. Received $2,740 from customers on April 8 on accounts recelvable. IOn April 9, prepaid a two-year insurance pollcy for $5,800 for coverage starting in May. 1. On Aprili 28, paid $1,020 in cash for water and utities used this month. k. Paid $15,300 in woges on April 29 for work done this month. l Received an electric uthity bili on April 30 for $2,450 for usage in Apri; 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 it 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 competitot. 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 of Prepare an unadjusted trial balance as of April 30. SPICEWOOD STABLES, INCORPORATED Unadjusted Trial Balance At April 30

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