Chapter 3 HW Check Your Work onnect r3 HW Instructions I help Question 21 (of 26) Save & Et Submit 0.42 points PA3-3 Analyzing the Effects of Transactions Using T-Accounts, Preparing an Unadjusted Trial Balance, and Determining Net Income and Net Profit Margin [LO 3-1, LO 3-2, LO 3-3, LO 3-4, LO 3-5 Spicewood Stables, Inc. was established in Dripping Springs, Texas, on Apni 1. The company proides stables, care for animais, 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 trom investors and issued $220,000 of common stock on April . 2. Buit a bam and other buildings for $153,000. On Apri 2, the company paid half the amount in cash on Apri 1 and signed a three-year note payable for the baance. 3. Provided $16,600 in animal care services for customers on Api 3, at on credt 4. Rented stables to customers who cared for their own animais receved cash of $21,500 on Apni 4 5. On Aprg 5, received S2350 cash tom a customer toboad her horse n May, June, and July (record as Uneamed Revenue). 6. Purchased hay and feed supplies on account on Apni6 for $3,600 7. Paid $2,900 on accounts payable on Apri 7 for previous purchases 8. Received $1,140 from oustomers on Agnil 8 on accounts receivable. 9. On Apri 9 prepaid a two-year insurance policy for $3.500. for coverage starting in May. 10.On April 28, paid $1,270 in cash for waner utines inoured in the monh 11.Paid $14,700 in wages on Ape 29 for work done this month 12 Received an electriec utlity bil on April 30 for $1,960 for usage in Apnt the bill will be paid e mh Required: 1. Prepare the joumal entry for each of the above transactions. f no entry is required for a transactionievent, select “No Journal Entry Required” in the first account faid ) Journal entry worksheet 12 Received contributions from investors and issued on Aprt 1. Record the transaction. $220,000 of common stock sactio General Journal DebitCredit
Expert Answer
Solution:
1) Journal Entries
Transaction | General Journal | Debit | Credit |
1) Apr.1 | Cash | $220,000 | |
Common Stock | $220,000 | ||
2) Apr.1 | Buildings | $76,500 | |
Cash | $76,500 | ||
Apr.2 | Buildings | $76,500 | |
Long Term Notes Payable | $76,500 | ||
3) Apr.3 | Accounts Receivable | $16,600 | |
Service Revenue | $16,600 | ||
4) Apr.4 | Cash | $21,500 | |
Rent Revenue | $21,500 | ||
5) Apr.5 | Cash | $2,350 | |
Unearned Revenue | $2,350 | ||
6) Apr.6 | Supplies | $3,600 | |
Accounts payable | $3,600 | ||
7) Apr.7 | Accounts Payable | $2,900 | |
Cash | $2,900 | ||
8) Apr.8 | Cash | $1,140 | |
Accounts Receivable | $1,140 | ||
9) Apr.9 | Prepaid Insurance | $3,500 | |
Cash | $3,500 | ||
10) Apr.28 | Utilities Expense | $1,270 | |
Cash | $1,270 | ||
11) Apr.29 | Salaries and Wages Expenses | $14,700 | |
Cash | $14,700 | ||
12) Apr.30 | Utilities Expense | $1,960 | |
Accounts Payable | $1,960 |