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Balance, and Determining Net Income and Net Profit Margin $[$LO $3-1,$ LO $3-2,$ LO $3-3,$ LO $3-4,$ LO $3-5]$

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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 $$330,000$ of common stock on April $1.$

b$.$ 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.

c$.$ Provided $$24,900$ in animal care sevices for customers on April $3,$ all on credit.

d$.$ Rented stables to customers who cared for their own animals; recelved cash of $$11,500$ on April $4$ for rent already earned this month.

e$.$ On April $5,$ received $$3,900$ 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 $$4,700.$

g$.$ Paid $$2,060$ on accounts payable on April $7$ for previous purchases.

h$.$ Received $$1,240$ from customers on April $8$ on accounts receivable.

i$.$ On April $9,$ prepaid a two$-$year insurance policy for $$5,700$ for coverage starting in May.

j$.$ On April $28,$ paid $$960$ in cash for water and utilities used this month.

k$.$ 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:

Prepare the journal entry for each of the above transactions.

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.

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 $30\mathrm{.}0$ percent earned by a close competitor.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$

Req $3$

Prepare the journal entry for each of the above transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required ${?}^{\text{I}}$ in the first account field.$)$

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8q,$

$12$

Recelved contributions from investors and issued $$330,000$ of common stock on April $1.$ Record the transaction.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$Goneral Journal,Doblt,Credit$],[($a$),,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

$$

find all $12$ journal entries.

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