Complete step 3 and 4 1. Prepare the journal entry for each of the above transactions.2. Post the transaction activity from requirement 1 to the T-Accounts below accounts begin with zerofirst 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,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 com1Complete this question by entering your answers in the tabs below.Req 1Req 2Req 3Req 4AReq 4BPrepare an unadjusted trial balance as of April 30.SPICEWOOD STABLES, INCORPORATEDUnadjusted Trial BalanceDebitCashAccounts ReceivableSuppliesPrepaid InsuranceBuildingsAccounts PayableDeferred RevenueNoties Payable (long-term)Common StockService RevenueRant RevenueUtilities ExpenseSalaries and Wages ExpenseTotal$<0 $Req 2Credit0Req 4A< Prev2 of 2 PA3-3 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Unadjusted TrialBalance, 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 foranimals, and grounds for riding and showing horses. You have been hired as the new assistant controller. The following transactionsfor April are provided for your review.a. Received contributions from investors and issued $340,000 of common stock on April 1.b. Acquired a barn for $150,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for thebalance.Printc. Provided $25,200 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 $19,500 on April 4 for rent earned this month.e. On April 5, received $3,000 cash from a customer to board her horse in May, June, and July (record as Deferred Revenue).f Purchased and received hay and feed supplies on account on April 6 for $3,900.9. PaidPaid $2,080 on accounts payable on April 7 for previous purchases.h. Received $2,640 from customers on April 8 on accounts receivable.On April 9, prepaid a two-year insurance policy for $5,100 for coverage starting in May.On April 28, paid $880 in cash for water and utilities used this month.k Paid $15,900 in wages on April 29 for work done this month.L Received an electric utility bill on April 30 for $1,720 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 thefirst 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 netincome 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 1Req 2Req 3Req 4AReq 48Prepare an unadjusted trial balance as of April 30.SPICEWOOD STABLES, INCORPORATEDUnadjusted Trial BalanceDebitCashAccounts ReceivableCredit

Introduction: The net profit margin, also said to be the net income margin or net margin, is the…

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 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 co

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 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 co

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.1IP

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The following are brief descriptions of two companies in different lines of business. 1. Company A is a retailer. It makes sales on a daily basis for cash and on credit cards. 2. Company B is a health spa. It has recently signed contracts with numerous individuals to use its facilities over a two-year period. The contract price was collected in advance. Describe when revenue should be recognized by each company. If revenue should not be recognized at the time of sale, indicate what method should be used to recognize the revenue. Justify your decision.
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Instructions: Analyze the transactions below based on the criteria provided. Refer to the sample provided for reference. Write your answers on the table provided below. The following transactions were taken from Matling Dormitory, a bedspace and catering services business owned by RCM (a hybrid business) during the first month of operations: Chart of Accounts Cash on hand Dorm Supplies Accounts Receivable Accounts Payable RCM, Capital RCM, Withdrawals Rent Income Catering Service Income Meals Expense Laundry Expense Taxes & licenses Expense Sample: Ms. RCM invested cash of P100,000 and furniture and fixtures amounting to P250,000. Sept. 5: Space rental income for the month: Cash P15,000 On account - Sept. 6: Pucbased various foods on account from Super Mart for her tenants, P50,000 and paid freight, P1,000. Sept. 10: RCM withdrew P10,000 cash from her business. Sept. 15: Received cash of P60,000 for catering services. Sept. 26: Paid her account with Super Mart. Sept. 27: Collected…
1. Maggio Company manufactures kitchen equipment used in hospitals. They distribute their products directly to the customer and, for the year ending 2019, they reported these revenues and expenses. Sales Revenue $985,000 Cost of Goods Sold $489,000 Operating Expenses $245,000 Use this information to construct an income statement for the year 2019. Operating Income Cash Retained Earnings Gross Profit Cost of Goods Sold Service Revenue Cost of Services Operating Expenses Sales Revenue PLEASE NOTE: You must enter the account names exactly as written above and all whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Maggio Company Income Statement for Year Ended 2019
Required information [The following information applies to the questions displayed below.] NightWoundsTime Brewing Co. distributes its products in an aluminum keg. Customers are charged a deposit of $95 per keg: deposits are recorded in the Keg Deposits account. d. Use the horizontal model, demonstrate accounting that would be appropriate for the cost of the kegs that are purchased and used by NightWoundsTime Brewing Company, including how to account for unreturned kegs? Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
E5-33. Assessing Revenue Recognition Timing Explain when each of the following businesses fulfills the performance obligations implicit in the sales contract. a. A clothing retailer like American Eagle Outfitters Inc. b. A contractor like Raytheon Company that performs work under long-term government contracts. c. A grocery store like Supervalu Inc. d. A producer of television shows like MTV that syndicates its content to television stations. e. A residential real estate developer that constructs only speculative houses and later sells these houses to buyers. f. A banking institution like Bank of America Corp, that lends money for home mortgages. g. A manufacturer like Harley-Davidson Inc. h. A publisher of magazines such as Time-Warner Inc. E5-34. Assessing Revenue Recognition Timing and Income Measurement
Required information [The following information applies to the questions displayed below.] Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company that sells de- motivational posters and office products. Down, Incorporated, encountered the following events during its first month of operations. a. Received $34,000 cash from the investors who organized Down, Incorporated b. Borrowed $19,000 cash and signed a note due in two years. c. Ordered equipment costing $16,000. d. Purchased $10,000 in equipment, paying $2,000 in cash and signing a six-month note for the balance. e. Received the equipment ordered in (c), paid for half of it, and put the rest on account. Required: 1. Summarize the financial effects of items (a)-(e) in a table. (Enter any decreases to account balances with a minus sign.) Beginning a. b. C. d. e. Ending Cash Assets 0 0 Equipment = 0 = || = ||| = = = = 0 = Accounts Payable 0 O Liabilities Short-term Notes Payable 0 0 Long-term…
In cell B10, enter a formula using the IF and AND functions to indicate whether the revenue goal has been met that month: a. Enter the logical test using the AND Function to determine if the Fundraisers amount in cell B7 equals 0 and the Total in cell B8 is greater than 20,000. b If the logical test is true, display Yes (using "Yes" for the value_if_true argument). c. If the logical test is false, insert a nested IF function. d. Enter the logical test of the nested IF function using the AND function to determin if the Fundraiser amount in cell B7 is greater than 0 and the Total in cell B8 is greater than 200,000. e. If the logical test for the nested IF function is true, display YES ( using "Yes" for the value_if_true argument). f. If the logical test if false, display No (using "No" for the value_if_false argument) I have tried to figure this excel formula out for about an hour now, this is what I have. but this is only half of the formula. I need the correct formula please.…
Required information [The following information applies to the questions displayed below.] Assume Down, Incorporated, was organized on May 1 to compete with Despair, Incorporated-a company that sells de motivational posters and office products. Down, Incorporated, encountered the following events during its first month of operations. a. Received $60,000 cash from the investors who organized Down, Incorporated b. Borrowed $20,000 cash and signed a note due in two years. c. Ordered equipment costing $16,000. d. Purchased $9,000 in equipment, paying $2,000 in cash and signing a six-month note for the balance. e. Received the equipment ordered in (c). paid for half of it, and put the rest on account.
Outdoor Leadership School is a newly organized business that teaches people how to inspire and influence others. The list of accounts to be opened in the general ledger is as follows:Accounts Payable Miscellaneous ExpenseAccounts Receivable Prepaid InsuranceCash Rent ExpenseEquipment SuppliesFees Earned Supplies ExpenseLorri Ross, Capital Unearned RentLorri Ross, Drawing Wages ExpenseList the accounts in the order in which they should appear in the ledger of Outdoor Leadership School and assign account numbers. Each account number is to have two digits: the first digit is to indicate the major classification (1 for assets, for example), and the second digit is to identify the specific account within each major classification (11 for Cash, for example).
True Value is a company providing cleaning services to customers amounting to OMR 4,500 on credit, the journal entry shall be. a. Debit Service Revenues OMR 4,500 and credit Cash OMR 4,500. b. Debit Accounts Receivable OMR 4,500 and credit Service Revenues OMR 4,500. c. Debit Cash OMR 4,500 and credit Service Revenues OMR 4,500. d. Debit Service Revenues OMR 4,500 and credit Accounts Receivable OMR 4,500.