PA3-3 (Stotic) 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 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 $200,000 of common stock on April 6. Acquired a barn for $142,000. On April 2. the company paid half the amount in cash and signed a three-year note payable for the balance c Provided $16.000 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 $13,000 on April 4 for rent earned this month e On Aprt s. received $1500 cash from a customer to board her horse in May, June and July (record as Deferred Revenue). Purchased and received hay and feed supplies on account on April 6 for $3,000 g. Paid $1700 on accounts payable on April 7 for previous purchases Received $1.000 from customers on April 8 on accounts receivable On April 9, prepold a two-year insurance policy for $3,600 for coverage starting in May. On April 28. paid $800 in cash for water and utilities used this month R Paid $14,000 in wages on April 29 for work done this month Received an electric utility bill on April 30 for $1.200 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 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-n. Refer to the revenues and expenses shown on the unadjusted trial balance. Based on this information calculate preliminary net Income and net profit margi 4-b. Determine whether the net profit margin is better or worse than the 300 percent earned by a close competitor RG 1 Rog2 ROG 3 Reg 4A Reg 48 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 operation Accounts Receivable Credit Debit Boginning Balance c) 17280 10800 2520 ft) Debit Beginning Balance ka) Ady fo b Cash Credit 198730 290.000 01.000 (6) 18,800 3.540 2.600 4.0000) 2.520 1.250 15,400 RK) Ending Balance Ending Balance Supplies Prepaid Insurance Credit Credit Debit Beginning Balance 4800 Debit Beginning Balance RO 4000 4.800 4,000 Ending Balance Ending Balance Buildings Accounts Payable Credit Credit 182000 Debit Beginning Bano MD) b) Debit Boginning Balans gy 4400 3.540 91,000 91.000 4.800 3140 Ending Bwano Ending Balance Deferred Revenue Notes Payable (long-term). Credit Credit Debit Beginning Balance Debit Beginning Balance 2000! 9100D 2.600) 91.000 D) Ending Balance Ending Balance Common Stock Service Revenue Credit Credit Debit Beginning Balance Debit Beginning Balance 290000 19800 290,000 a 10,000 to Ending BV Ensing Balance Credit Credit Debit eginning Balance 182000 Debit Beginning Balance (9) 4400 3,540 91,000 $1,000 4,8000) 3,14010 b) Ending Balance Ending Balance 0 Deferred Revenue Notes Payable (long-term) Credit Credit Debit Beginning Balance Debit Beginning Balance 2600 91000 2.600) 91.000 Mb) Ending Balance Ending Balance Common Stock Service Revenue Credit Credit Debit Beginning Balans Debit Beginning Balance 290000 198001 290,000 fa) 10.800 (1) Ending Balance Ending Balance Rent Revenue Utilities Expense Credit Credit Debit Beginning Balance 18800 Debit Beginning Balance 0 4390 18.800 id) 1.250 3,140 Ending Balance Ending Balance Debit Beginning Balance k) Salaries and Wages Expense Credit 15400 15.400 Ending Balance