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] (General Ledger)

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.

1. Received contributions from investors and issued $290,000 of common stock on April 1.
2. Acquired a barn for $182,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance.
3. Provided $19,800 in animal care services for customers on April 3, all on credit.
4. Rented stables to customers who cared for their own animals; received cash of $18,800 on April 4 for rent earned this month.
5. On April 5, received $2,600 cash from a customer to board her horse in May, June, and July (record as Deferred Revenue).
6. Purchased and received hay and feed supplies on account on April 6 for $4,800.
7. Paid $1,980 on accounts payable on April 7 for previous purchases.
8. Received $2,520 from customers on April 8 on accounts receivable.
9. On April 9, prepaid a two-year insurance policy for $4,000 for coverage starting in May.
10. On April 28, paid $1,250 in cash for water and utilities used this month.
11. Paid $15,400 in wages on April 29 for work done this month.
12. Received an electric utility bill on April 30 for $3,140 for usage in April; the bill will be paid next month.