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.

1. Received contributions from investors and issued $170,000 of common stock on April 1.
2. 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.
3. Provided $18,500 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 $17,000 on April 4 for rent earned this month.
5. On April 5, received $3,650 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 $4,400.
7. Paid $3,140 on accounts payable on April 7 for previous purchases.
8. Received $1,340 from customers on April 8 on accounts receivable.
9. On April 9, prepaid a two-year insurance policy for $5,000 for coverage starting in May.
10. On April 28, paid $1,700 in cash for water and utilities used this month.
11. Paid $14,300 in wages on April 29 for work done this month.
12. Received an electric utility bill on April 30 for $2,120 for usage in April; the bill will be paid next month.

Required:

1. 1. Prepare the journal entry for each of the above transactions.

2. 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. 3. Prepare an unadjusted trial balance as of April 30.

4. 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.

5. 4-b. Determine whether the net profit margin is better or worse than the 30.0 percent earned by a close competitor.

I typed out the questions font.

No Transaction General Journal Debit Credit 1 (a) Cash 170,000 Common Stock 170,000 2 (b) 233,000 Buildings Cash 116,500 116,500 Notes Payable (long-term) 3 (c) Accounts Receivable 18,500 Service Revenue 18,500 4 (d) Cash 17,000 Rent Revenue 17,000 5 (e) Cash 3,650 Deferred Revenue 3,650 6 (f) 4,400 Supplies Accounts Payable 4,400 7 (g) 3,140 Accounts Payable Cash 3,140 8 (h) Cash 1,340 Accounts Receivable 1,340 9 (i) 5,000 Prepaid Insurance Cash 5,000 10 (i) Utilities Expense 1,700 Cash 1,700 11 (k) Salaries and Wages Expense 14,300 Cash 14,300 12 (1) 2,120 Utilities Expense Accounts Payable 2,120 Cash Accounts Receivable Beg. Bal (c) 18,500 1,340 (h) Beg. Bal (a) (d) (e) (h) 170,000 17,000 3,650 116,500 (b) 3,140 (g) 5,000 (0) 1,700(0) 14,300 (k) 1,340 End. Bal 17,160 End. Bal 51,350 Supplies Prepaid Insurance Beg. Bal Beg. Bal (f) 4,400 (0) 5,000 End. Bal 4,400 End. Bal 5,000 Buildings Accounts Payable Beg. Bal Beg. Bal (b) 233,000 4,400 (f) 2,120 (1) (g) 3,140 End. Bal 233,000 End. Bal 3,380 Deferred Revenue Notes Payable (long-term) Beg. Bal Beg. Bal 3,650 (e) 116,500 (b) End. Bal 3,650 End. Bal 116,500 Common Stock Service Revenue Beg. Bal Beg. Bal 170,000 (a) 18,500 (c) End. Bal 170,000 End. Bal 18,500 Rent Revenue Utilities Expense Beg. Bal Beg. Bal (1) 17,000 (d) 2,120 End. Bal 17,000 End. Bal 2,120 Salaries and Wages Expense Beg. Bal (k) 14,300 End. Bal 14,300 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 $ 51,350 Accounts Receivable 17,160 4,400 Supplies Prepaid Insurance Buildings Accounts Payable 5,000 233,000 Deferred Revenue Notes Payable (long-term) 3,380 3,650 116,500 170,000 18,500 17,000 Common Stock Service Revenue Rent Revenue Utilities Expense Salaries and Wages Expense 2,120 14,300 327,330 Total $ $ 329,030 Req 1 Req 2 Reg 3 Req 4A Req 4B Refer to the revenues and expenses shown on the unadjusted trial bala net income and net profit margin. (Round your Net Profit Margin answe $ 35,500 Preliminary Net Income Net Profit Margin % Req 1 Req 2 Req 3 Req 4A Req 4B Determine whether the net profit margin is better or worse than the 30. Better Worse No Transaction General Journal Debit Credit 1 (a) Cash 170,000 Common Stock 170,000 2 (b) 233,000 Buildings Cash 116,500 116,500 Notes Payable (long-term) 3 (c) Accounts Receivable 18,500 Service Revenue 18,500 4 (d) Cash 17,000 Rent Revenue 17,000 5 (e) Cash 3,650 Deferred Revenue 3,650 6 (f) 4,400 Supplies Accounts Payable 4,400 7 (g) 3,140 Accounts Payable Cash 3,140 8 (h) Cash 1,340 Accounts Receivable 1,340 9 (i) 5,000 Prepaid Insurance Cash 5,000 10 (i) Utilities Expense 1,700 Cash 1,700 11 (k) Salaries and Wages Expense 14,300 Cash 14,300 12 (1) 2,120 Utilities Expense Accounts Payable 2,120 Cash Accounts Receivable Beg. Bal (c) 18,500 1,340 (h) Beg. Bal (a) (d) (e) (h) 170,000 17,000 3,650 116,500 (b) 3,140 (g) 5,000 (0) 1,700(0) 14,300 (k) 1,340 End. Bal 17,160 End. Bal 51,350 Supplies Prepaid Insurance Beg. Bal Beg. Bal (f) 4,400 (0) 5,000 End. Bal 4,400 End. Bal 5,000 Buildings Accounts Payable Beg. Bal Beg. Bal (b) 233,000 4,400 (f) 2,120 (1) (g) 3,140 End. Bal 233,000 End. Bal 3,380 Deferred Revenue Notes Payable (long-term) Beg. Bal Beg. Bal 3,650 (e) 116,500 (b) End. Bal 3,650 End. Bal 116,500 Common Stock Service Revenue Beg. Bal Beg. Bal 170,000 (a) 18,500 (c) End. Bal 170,000 End. Bal 18,500 Rent Revenue Utilities Expense Beg. Bal Beg. Bal (1) 17,000 (d) 2,120 End. Bal 17,000 End. Bal 2,120 Salaries and Wages Expense Beg. Bal (k) 14,300 End. Bal 14,300 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 $ 51,350 Accounts Receivable 17,160 4,400 Supplies Prepaid Insurance Buildings Accounts Payable 5,000 233,000 Deferred Revenue Notes Payable (long-term) 3,380 3,650 116,500 170,000 18,500 17,000 Common Stock Service Revenue Rent Revenue Utilities Expense Salaries and Wages Expense 2,120 14,300 327,330 Total $ $ 329,030 Req 1 Req 2 Reg 3 Req 4A Req 4B Refer to the revenues and expenses shown on the unadjusted trial bala net income and net profit margin. (Round your Net Profit Margin answe $ 35,500 Preliminary Net Income Net Profit Margin % Req 1 Req 2 Req 3 Req 4A Req 4B Determine whether the net profit margin is better or worse than the 30. Better Worse