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Spicewood Stables, Inc., was established in Dripping Springs, Texas, on April 1. The comapny 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.

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. a. Received contributions from investors and issued $280,000 of common stock on April 1. b. Acquired a barn for $206,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance. c. Provided $17,200 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 $12,500 on April 4 for rent earned this month. e. On April 5, received $3,600 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 $5,150. 9. Pald $3,220 on accounts payable on April 7 for previous purchases. h. Received $2,740 from customers on April 8 on accounts receivable. 1. On April 9. prepaid a two-year insurance policy for $5,800 for coverage starting in May. J.On April 28, paid $1,020 in cash for water and utilities used this month. k. Pald $15,300 in wages on April 29 for work done this month 1. Received an electric utility bill on April 30 for $2,450 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 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. Journal entry worksheet 4 12 5 6 7 8 ..... N Acquired a barn for $206,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Transaction (b) Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 12 > ..... Provided $17,200 in animal care services for customers on April 3, all on credit. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Transaction (c) Record entry Clear entry View general journal Journal entry worksheet Rented stables to customers who cared for their own animals; received cash of $12,500 on April 4 for rent earned this month. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit (d) Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 12 On April 5, received $3,600 cash from a customer to board her horse in May, June, and July (record as Deferred Revenue). Record the transaction. Note: Enter debits before credits General Journal Transaction (e) Debit Credit Record entry Clear entry View general journal Journal entry worksheet Purchased and received hay and feed supplies on account on April 6 for $5,150. Record the transaction. Note: Enter debits before credits. General Journal Debit Transaction (0) Credit Record entry Clear entry View general journal ... Journal entry worksheet Paid $3,220 on accounts payable on April 7 for previous purchases. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Transaction (g) Record entry Clear entry View general journal Journal entry worksheet 1 5 12 6 8 9 12 ..... On April 9, prepaid a two-year insurance policy for $5,800 for coverage starting in May. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Transaction (0) Record entry Clear entry View general journal Journal entry worksheet 10 12 .... 7 8 9 Received an electric utility bill on April 30 for $2,450 for usage in April; the bill will be paid next month. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit () Record entry Clear entry View general journal Post the transaction activity from requirement 1 to the T-Accounts below. All accounts begin with zero balance month of operations. Cash Accounts Receivable Beg. Bal Beg. Bal End. Bal End. Bal Supplies Prepaid Insurance Beg. Bal Beg. Bal End. Bal End. Bal Buildings Accounts Payable Beg. Bal Beg. Bal End. Bal End. Bal 0 . 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. Reg 1 Reg 2 Reg 3 Req 4A Req 48 Determine whether the net profit margin is better or worse than the 30.0 percent earned by a close competitor. Better Worse

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