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 provlded for your revlew. a. Recelved contributions from Investors and issued $150,000 of common stock on April 1 b. Acquired a barn for $205,000. On April 2. the company pald half the amount in cash and signed a three-year note payable for the balance. c. Provided $23,500 in animal care services for customers on April 3. all on credit. d. Rented stables to customers who cared for their own anlmals; recelved cash of $22.000 on April 4 for rent earned this month. e. On April 5, recelved $1.550 cash from a customer to board her horse in May. June, and July (record as Deferred Revenue). f Purchased and recelved hay and feed supplies on account on April 6 for $3.200. g. Paid $1720 on accounts payable on April 7 for previous purchases. h. Recelved $1,820 from customers on April 8 on accounts recelvable. LOn April 9. prepald a two-year Insurance policy for $4,600 for coverage starting in May. J. On April 28. pald $100 in cash for water and utilitles used this month. k. Paid $6.500 In wages on April 29 for work done this month. L. Recelved an electric utility bill on April 30 for $2.260 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.
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 provlded for your revlew. a. Recelved contributions from Investors and issued $150,000 of common stock on April 1 b. Acquired a barn for $205,000. On April 2. the company pald half the amount in cash and signed a three-year note payable for the balance. c. Provided $23,500 in animal care services for customers on April 3. all on credit. d. Rented stables to customers who cared for their own anlmals; recelved cash of $22.000 on April 4 for rent earned this month. e. On April 5, recelved $1.550 cash from a customer to board her horse in May. June, and July (record as Deferred Revenue). f Purchased and recelved hay and feed supplies on account on April 6 for $3.200. g. Paid $1720 on accounts payable on April 7 for previous purchases. h. Recelved $1,820 from customers on April 8 on accounts recelvable. LOn April 9. prepald a two-year Insurance policy for $4,600 for coverage starting in May. J. On April 28. pald $100 in cash for water and utilitles used this month. k. Paid $6.500 In wages on April 29 for work done this month. L. Recelved an electric utility bill on April 30 for $2.260 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.
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 16EA: Discuss how each of the following transactions for Watson, International, will affect assets,...
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