Question

I need help filling out the rest of this please

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 $230,000 of common stock on April 1. b. Acquired a barn for $180.000. On April 2. the company paid half the amount in cash and signed a three-year note payable for the balance. c. Provided $18,000 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 $14,000 on April 4 for rent earned this month. e. On April 5, received $3.350 cash from a customer to board her horse in May, June, and July (record as Deferred Revenue). 1. Purchased and received hay and feed supplies on account on April 6 for $3,800. g. Paid $2.600 on accounts payable on April 7 for previous purchases. h. Received $2,040 from customers on April 8 on accounts receivable. i. On April 9, prepaid a two-year insurance policy for $4,800 for coverage starting in May. j. On April 28. paid $1,140 in cash for water and utilities used this month. k. Paid $14,800 in wages on April 29 for work done this month. Received an electric utility bill on April 30 for $1.560 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. 4-2. 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 Reg 4B Prepare the journal entry for each of the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.)

Answer 1

1) Journal Entries:
All the Journal entries drafted by student are checked
and are correct.
2) T-Accounts:
DEBIT	AMOUNT $	CREDIT	AMOUNT $
Cash A/c
OB	0	b	90000
a	230000	g	2600
d	14000	i	4800
e	3350	j	1140
h	2040	k	14800
		CB	136050
Common Stock a/c
		a	230000
Buildings a/c
b	180000
Notes payable (long term) a/c
		b	90000
Accounts Receivable a/c
c	18000	h	2040
		CB	15960
Service Revenue a/c
		c	18000
Rent Revenue a/c
		d	14000
Deferred Revenue a/c
		e	3350
Supplies a/c
f	3800
Accounts Payable a/c
g	2600	f	3800
CB	2760	l	1560
Prepaid Insurance a/c
i	4800
Utilities Expense a/c
j	1140	CB	2700
l	1560
Salaries and Wages expense a/c
k	14800

3) Unadjusted Trial Balance:
Accounts Title	Debit $	Credit $
Cash	136050
Common Stock		230000
Building	180000
Notes payable longterm		90000
Accounts receivable	15960
Service Revenue		18000
Rent Revenue		14000
Deferred revenue		3350
supplies	3800
Accounts payable		2760
Prepaid insurance	4800
Utilities expense	2700
Salaries and Wages expense	14800
Total	358110	358110
4a)
Preliminary Net Income:
Revenues	32000
Less:Expenses:
Utilities	2700
Salary & wages	14800
total expenses	17500
Net Income	14500
Net Profit Margin=
Net Income / Revenues
14500/32000 =45.31%
4b) Yes, the net profit margin (45.31%) are better
than 30% earned by a close competitor.