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 $210,000 in cash ($42,000 each). b. Built a barn for $146,000; paid half the amount in cash on April 1 and signed a three-year note payable for the balance. c. Provided $15,460 in animal care services for customers, all on credit. d. Rented stables to customers who cared for their own animals; received cash of $13,380. e. Received from a customer $1,550 to board her horse in May, June, and July (Record as Deferred Revenue). f. Purchased hay and feed supplies on account for $3,260. 9. Paid $860 in cash for water utilities incurred in the month. h. Paid $1,730 on accounts payable for previous purchases. i. Received $1,020 from customers on accounts receivable. j. Paid $4,080 in wages to employees who worked during the month. k. At the end of the month, prepaid a two-year insurance policy for $3,680. 1. Received an electric utility bill for $1,220 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 T-accounts.

Answer 1

Sunny Valley Stables Inc. Accounts Receivable 15460 i. b. C. 1020 a. . d. Cash 2100001 13380 1550 73000 860 1730 e. Debit in $ Credit in $ 142600 14440 3260 1020 h. j. k. Bal. 4080 Bal. 14440 3680 142600 15460 15460 3680 225950 225950 146000 Unadjusted Trial Balance At April 30, 2017 Accounts Titles Cash Accounts Receivable Supplies Prepaid Insurance Barns Accounts Payable Deferred Revenue Long Term notes Payable Contributed Capital Animal Care Service Revenue Rental Revenue Utilities Expense Wages Expense Totals 2750 1550 73000 Supplies 3260 Bal. f. k. Prepaid Insurance 3680 Bal. 3680 3260 3680 3680 210000 15460 3260 3260 13380 2080 b. Barns 146000 Bal. 3260 4080 h. Bal. Accounts Payable 1730) f. 2750 1. 4480 146000 1220 316140 316140 146000 146000 4480 Deferred Revenue e. 1550 Long Term notes Payable b. 73000 73000 73000 73000 Bal. 1550 Bal. 1550 1550 210000 Contributed Capital a. 210000 210000 Animal Care Service Revenue C. 15460 15460 15460 15460 Bal. Bal. 210000 Rental Revenue d. 13380 Utilities Expense 860 1220 Bal. 2080 Bal. I. 2080 13380 13380 13380 2080 j. Wages Expense 4080 Bal. 4080 4080 4080