Spicewood Stables, Inc. was established in Dripping Springs, Texas, on April 1.

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 $210,000 of common stock on April 1 2. Built a barn and other buildings for $140,000. On April 2, the company paid half the amount in cash on April 1 and signed a three-year note payable for the balance 3. Provided $24,500 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 $22,500 on April 4. 5. On April 5, received $3,950 cash from a customer to board her horse in May, June, and July (record as Unearned Revenue) 6. Purchased hay and feed supplies on account on April 6 for $3,100. 7. Paid $3,500 on accounts payable on April 7 for previous purchases. 8. Received $1,060 from customers on April 8 on accounts receivable 9. On April 9, prepaid a two-year insurance policy for $3,700. for coverage starting in May 10.On April 28, paid $1,490 in cash for water utilities incurred in the month 11.Paid $14,600 in wages on April 29 for work done this month 12.Received an electric utility bill on April 30 for $1,360 for usage in April; the bill will be paid next month Required: 1. Prepare the journal entry for each of the above transactions. (lf no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Explanation / Answer

for part 4-a provide unadjusted trail balance

Date

Date

Description Debit Credit 1-Apr Cash $210,000.00                 Common Stock $210,000.00 Common stock issued to investors 1-Apr Building $ 70,000.00            Cash $ 70,000.00 Half amount for construction of Building paid in advance 1-Apr Building $ 70,000.00               Notes Payable $ 70,000.00 Half amount issued as Notes payable for construction of building 3-Apr Accounts Receivable $ 24,500.00                Service Revenue $ 24,500.00 Provided services on credit 4-Apr Cash $ 22,500.00                Rent Revenue $ 22,500.00 Rent Revenue Received in cash 5-Apr Cash $    3,950.00              Unearned reveue $    3,950.00 Amount received in advance for services to be performed 6-Apr Supplies $    3,100.00              Accounts Payable $    3,100.00 Supplies purchased on account 7-Apr Accounts Payable $    3,500.00                       Cash $    3,500.00 Amount paid for previous purchases 8-Apr Cash $    1,060.00               Accounts Receivable $    1,060.00 Amount received from customers 9-Apr Prepaid Insurance $    3,700.00                Cash $    3,700.00 Amount paid for insurance in advance 28-Apr Utilities expense $    1,490.00                Cash $    1,490.00 Water utilities paid 29-Apr Wage Expense $ 14,600.00                  Cash $ 14,600.00 Wages for month paid in cash 30-Apr Utilities expense $    1,360.00                 Accounts Payable $    1,360.00 Electricity bill to be paid in April made due

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