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 Received contributions from investors and issued $330,000 of common stock on April 1 Acquired a barn for $165,000 On April 2, the company paid half the amount in cash and signed a three year note payable for the balance Provided $24,900 in animal care services for customers on April 3, all on credit Rented stables to customers who cared for their own animals received cash of $11,500 on April 4 for rent earned this month On April 5, received $3,900 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 $4,700 Paid $2,860 on accounts payable on April 7 for previous purchases Received $1,240 from customers on April 8 on accounts receivable On April 9, prepaid a two year insurance policy for $5,700 for coverage starting in May On April 28, paid $960 in cash for water and utilities used this month Paid $15,800 in wages on April 29 for work done this month Received an electric utility bill on April 30 for $1,940 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 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

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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

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.

Received contributions from investors and issued $330,000 of common stock on April 1.
Acquired a barn for $165,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance.
Provided $24,900 in animal care services for customers on April 3, all on credit.
Rented stables to customers who cared for their own animals; received cash of $11,500 on April 4 for rent earned this month.
On April 5, received $3,900 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 $4,700.
Paid $2,860 on accounts payable on April 7 for previous purchases.
Received $1,240 from customers on April 8 on accounts receivable.
On April 9, prepaid a two-year insurance policy for $5,700 for coverage starting in May.
On April 28, paid $960 in cash for water and utilities used this month.
Paid $15,800 in wages on April 29 for work done this month.
Received an electric utility bill on April 30 for $1,940 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.

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