Revenue). 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 $170,000 of common stock on April 1. b. Acquired a barn for $233,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance. c. Provided $18,500 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 $17,000 on April 4 for rent earned this month. e. On April 5, received $3,650 cash from a customer to board her horse in May, June, and July (record as Deferred Purchased and received hay and feed supplies on account on April 6 for $4,400. g. Paid $3,140 on accounts payable on April 7 for previous purchases. h. Received $1,340 from customers on April 8 on accounts receivable. i. On April 9, prepaid a two-year insurance policy $5,000 for coverage starting in May. j. On April 28, paid $1,700 in cash for water and utilities used this month. k. Paid $14,300 in wages on April 29 for work done this month. 1. Received an electric utility bill on April 30 for $2,120 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 show on the unadjusted trial balance. Based 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Prepare an unadjusted trial balance as of April 30. SPICEWOOD STABLES, INC. Unadjusted Trial Balance Debit Credit Cash Accounts Receivable Supplies Prepaid Insurance Buildings Accounts Payable Deferred Revenue Notes Payable (long-term) Common Stock Service Revenue Rent Revenue Utilities Expense Salaries and Wages Expense Total $ 0 $ 0 Cash Accounts Receivable Beg. Bal Beg. Bal End. Bal End. Bal Supplies Prepaid Insurance Beg. Bal Beg. Bal End. Bal End. Bal Buildings Accounts Payable Beg. Bal Beg. Bal End. Bal End. Bal 0 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. Bal Refer to the revenues and expenses shown on the unadjusted trial balance. Based on thi information, calculate preliminary net income and net profit margin. (Round your Net Pro Margin answer to 1 decimal place.) Show less Preliminary Net Income Net Profit Margin % Determine whether the net profit margin is better or worse than the 30.0 percent earned by a close competitor. O Better O Worse General Journal Credit No Transaction 1 (a) Cash Debit 170,000 2 (b) 233,000 Buildings Cash Notes Payable (long-term) 116,500 116,500 3 (c) 18,500 Accounts Receivable Service Revenue 18,500 (d) 17,000 Cash Rent Revenue 17,000 5 3,650 Cash Deferred Revenue 3,650 N 6 (1) 4,400 Supplies Accounts Payable 4,400 7 (g) Accounts Payable Cash 3,140 3,140 1 8 (h) 1,340 Cash Accounts Receivable 1,340 9 (0) Prepaid Insurance Cash 5,000 5,000 10 00) 1,700 Utilities Expense Cash 1,700 11 Salaries and Wages Expense 14,300 12 (0 Utilities Expense 2,120
