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 $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 Revenue). f. Purchased and received hay and feed supplies on account on April 6 for $4,400. g. Paid $1,760 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 for $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 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.

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 $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 Revenue). f. Purchased and received hay and feed supplies on account on April 6 for $4,400. g. Paid $1,760 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 for $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 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Part 1: Received contributions from investors and issued \$170,000 of common stock on April 1. Record the transaction. Part 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. Record the transaction. Part 3: Provided $18,500 in animal care services for customers on April 3, all on credit. Record the transaction. Part 4: Rented stables to customers who cared for their own animals; received cash of \$17, on April 4 for rent earned this month. Record the transaction. Part 5: On April 5, received $3,650 cash from a customer to board her horse in May June, and July (record as Deferred Revenue). Record the transaction. Part 6: Purchased and received hay and feed supplies on account on April 6 for \$4,400 Record the transaction. Part 7: Paid \$1,760 on accounts payable on April 7 for previous purchases . Record the transaction. Part 8: Received \$1,340 from customers on April 8 on accounts receivable. Record the transaction .

Help
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 $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 Revenue).
f. Purchased and received hay and feed supplies on account on April 6 for $4,400.
g. Paid $1,760 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 for $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 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.
Complete this question by entering your answers in the tabs below.
< Prev
2 of 2
Next >
Sa

Req 48
Prepare the journal entry for each of the above transactions. (If no entry
Required" in the first account field.)
View transaction list
X
VITUSSE
receivable. Record the transaction.
9
On April 9, prepaid a two-year insurance policy for
$5,000 for coverage starting in May. Record the
transaction.
10 On April 28, paid $1,700 in cash for water and utilities
used this month. Record the transaction.
11 Paid $14,300 in wages on April 29 for work done this
month. Record the transaction.
12 Received an electric utility bill on April 30 for $2,120 for
usage in April; the bill will be paid next month. Record
the transaction.
Note:
= journal entry has been entered
Record entry
Clear entry
< Prev
ט חוץח ווס סוCuOLUTT וווטוו סדקיץ IRCUCIRCU
n
Cra
View gene
Rea 2
2 of 2
FF
FFF

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.