Question

Sunny Valley Stables Inc. was established on April 1, 2017. The company provides stables, care for animals, and grounds for riding and showing horses. You have been hired as the new assistant financial controller. The following transactions for April 2017 are provided for your review a. Received contributions from five investors of $260,000 in cash (552,000 each b. Built a barn for $166,000 paid half the amount in cash on April and signed a three-year note payable for the balance Provided $16.460 in animal care services for customers, alon credit d. Rented stables to customers who cared for their own animals, received cash of $14.280. e. Received from a customer $1,800 to board her horse in May, June and July Record as Deferred Revenue Purchased hay and feed supplies on account for $3.510 Paid $960 in cash for water utilities incurred in the month h. Paid $1880 on accounts payable for previous purchases Received $1120 from customers on accounts receivable Paid $4.480 in wages to employees who worked during the month kAt the end of the month, prepaid a two-year insurance policy for $4.000 Received an electric utility bill for $1320 for usage in April bill will be paid next month Required: 1. & 2. Record in the T-accounts the effects of each transaction for Sunny Valley Stables in April, referencing each transaction in the accounts with the transaction letter. All accounts begin with zero balances. Show the unadjusted ending balances in the Taccounts Cash Accounts Receivable Beg bal Beg hal End bal End bal Supplies Prepaidat Beg har Beghel < Prev Next > E e DELL

Answer 1

Solution: Cash A/c

Particulars	Amount	Particulars	Amount
To Contributed Capital A/c	260,000	By Barn A/c	83,000
To Rental Revenue A/c	14280	By Utilities A/c	960
To Deferred Revenue a/c	1800	By Account Payable A/c	1880
To Account Receivable A/c	1120	By Wages A/c	4480
		By Prepaid Insurance A/c	4080
		End Balance	182,800

Contributed Capital A/c

Particulars	Amount	Particulars	Amount
End Balance	260,000	By Cash A/c	260,000

Barn A/c

Particulars	Amount	Particulars	Amount
To Cash A/c	83,000	End Balance	166,000
To Note Payable A/c	83,000

Note Payable A/c

Particulars	Amount	Particulars	Amount
End Balance	83,000	By Barn A/c	83,000

Animal Care Service Revenue A/c

Particulars	Amount	Particulars	Amount
To End Balance	16,460	By Account Receivable A/c	16,460

Account Receivable A/c

Particulars	Amount	Particulars	Amount
To Animal care service revenue a/c	16,460
		By Cash A/c	1120
		End balance	15340

Rental Revenue A/c

Particulars	Amount	Particulars	Amount
End Balance	14,280	By Cash A/c	14,280

Deferred Revenue A/c

Particulars	Amount	Particulars	Amount
End Balance	1,800	By Cash A/c	1,800

Supplies A/c

Particulars	Amount	Particulars	Amount
To Account Payable A/c	3,510	End Balance	3,510

Account Paayable A/c

Particulars	Amount	Particulars	Amount
To Cash A/c	1880	By Supplies A/c	3510
End Balance	1,630

Utilities A/c

Particulars	Amount	Particulars	Amount
To Cash A/c	960
To outstanding utilities A/c	1,320	End Balance	2,280

Wages A/c

Particulars	Amount	Particulars	Amount
To Cash A/c	4,480	End Balance	4,480

Prepaid Insurance A/c

Particulars	Amount	Particulars	Amount
To Cash A/c	4,080	End Balance	4,080

Outstanding Utilities A/c

Particulars	Amount	Particulars	Amount
End Balance	1,320	By utilities A/c	1,320

Unadjusted Trial Balance

Particulars	Debit	Credit
Cash A/c	182,200
Contributed capital A/c		260,000
Barn A/c	166,000
Note Payable A/c		83,000
Animal care service revenue A/c		16,460
Account Receivable A/c	15,340
Rental Revenue A/c		14,280
Deferred Revenue A/c		1800
Supplies A/c	3,510
Account Payable A/c		1,630
Utilities A/c	2,280
Wages A/c	4,480
Prepaid Insurance A/c	4,080
Outstanding utilities a/c		1,320
	377,890	378490