Spicewood Stables Inc was established in Dripping Springs Te

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.)

Solution

Journal Entry Date Account Tittle & Explanation Debit Credit 01-Apr Cash $210,000                 Common Stock $210,000 To Record Common stock issued to investors 01-Apr Building $140,000 Cash $70,000 Notes Payable $70,000 To Record Half amount for construction of Building paid in advance and half through Note Payable 03-Apr Accounts Receivable $24,500 Service Revenue $24,500 To Record Provided services on credit 04-Apr Cash $22,500 Rent Revenue $22,500 To Record Rent Revenue Received in cash 05-Apr Cash $3,950 Unearned reveue $3,950 To RecordAmount received in advance for services to be performed 06-Apr Supplies $3,100 Accounts Payable $3,100 To Record Supplies purchased on account 07-Apr Accounts Payable $3,500 Cash $3,500 To Record Amount paid for previous purchases 08-Apr Cash $1,060 Accounts Receivable $1,060 To Record Amount received from customers 09-Apr Prepaid Insurance $3,700 Cash $3,700 Amount paid for insurance in advance 10-Apr Utilities expense $1,490 Cash $1,490 Water utilities paid 11-Apr Wage Expense $14,600 Cash $14,600 To Record Wages for month paid in cash 12-Apr Utilities expense $1,360 Accounts Payable $1,360 To Record Electricity bill to be paid in April made due 4.a. Computation of Preliminary Net Income Service revenue $24,500 Rent revenue $22,500 Utilities expenses -2850 Salaries and wages ($14,600.00) Preliminary net income $29,550.00 Total revenue $47,000 Net profit margin (on total revenue) = 63%