Question

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.

 

1. Received contributions from investors and issued $310,000 of common stock on April 1.

2. Acquired a barn for $192,000. On April 2, the company paid half the amount in cash and signed a three-year note payable for the balance.

3. Provided $17,500 in animal care services for customers on April 3, all on credit.

4. Rented stables to customers who cared for their own animals; received cash of $16,500 on April 4 for rent earned this month.

5. On April 5, received $4,200 cash from a customer to board her horse in May, June, and July (record as Deferred Revenue).

6. Purchased and received hay and feed supplies on account on April 6 for $4,500.

7. Paid $2,800 on accounts payable on April 7 for previous purchases.

8. Received $1,600 from customers on April 8 on accounts receivable.

9. On April 9, prepaid a two-year insurance policy for $4,500 for coverage starting in May.

10. On April 28, paid $970 in cash for water and utilities used this month.

11. Paid $15,600 in wages on April 29 for work done this month.

12. Received an electric utility bill on April 30 for $2,620 for usage in April; the bill will be paid next month.