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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 $330,000 of common stock on April 1.2. Built a barn and other buildings for $165,000. 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 $24,900 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 $11,500 on April 4.5. On April 5, received $3,900 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 $4,700.7. Paid $2,860 on accounts payable on April 7 for previous purchases.8. Received $1,240 from customers on April 8 on accounts receivable.9. On April 9, prepaid a two-year insurance policy for $5,700. for coverage starting in May.10. On April 28, paid $960 in cash for water utilities incurred in the month.11. Paid $15,800 in wages on April 29 for work done this month.12. Received an electric utility bill on April 30 for $1,940 for usage in April; the bill will be paid next month.1. Prepare the journal entry for each of the above transactions.

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Final answer:

This answer provides the journal entries for each of the transactions in the given scenario at Spicewood Stables, Inc. in April.

Step-by-step explanation:

1. April 1: The journal entry would be:

Cash $330,000

Common Stock $330,000

2. April 2: The journal entry would be:

Buildings $165,000

Notes Payable $82,500

Cash $82,500

3. April 3: The journal entry would be:

Accounts Receivable $24,900

Service Revenue $24,900

4. April 4: The journal entry would be:

Cash $11,500

Unearned Revenue $11,500

5. April 5: The journal entry would be:

Cash $3,900

Unearned Revenue $3,900

6. April 6: The journal entry would be:

Hay and Feed Supplies $4,700

Accounts Payable $4,700

7. April 7: The journal entry would be:

Accounts Payable $2,860

Cash $2,860

8. April 8: The journal entry would be:

Cash $1,240

Accounts Receivable $1,240

9. April 9: The journal entry would be:

Prepaid Insurance $5,700

Cash $5,700

10. April 28: The journal entry would be:

Utilities Expense $960

Cash $960

11. April 29: The journal entry would be:

Wages Expense $15,800

Cash $15,800

12. April 30: The journal entry would be:

Utilities Expense $1,940

Accounts Payable $1,940

User Darkhydro
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Answer:

1. Received contributions from investors and issued $330,000 of common stock on April 1.

Dr Cash 330,000

Cr Common stock 330,000

2. Built a barn and other buildings for $165,000. On April 2, the company paid half the amount in cash on April 1 and signed a three-year note payable for the balance.

Dr Barn and Buildings 165,000

Cr Cash 82,500

Cr Notes payable 82,500

3. Provided $24,900 in animal care services for customers on April 3, all on credit.

Dr Accounts receivable 24,900

Cr Service revenue 24,900

4. Rented stables to customers who cared for their own animals; received cash of $11,500 on April 4.

Dr Cash 11,500

Cr Rent revenue 11,500

5. On April 5, received $3,900 cash from a customer to board her horse in May, June, and July (record as Unearned Revenue).

Dr Cash 3,900

Cr Unearned revenue 3,900

6. Purchased hay and feed supplies on account on April 6 for $4,700.

Dr Supplies 4,700

Cr Accounts payable 4,700

7. Paid $2,860 on accounts payable on April 7 for previous purchases.

Dr Accounts payable 2,860

Cr Cash 2,860

8. Received $1,240 from customers on April 8 on accounts receivable.

Dr Cash 1,240

Cr Accounts receivable 1,240

9. On April 9, prepaid a two-year insurance policy for $5,700. for coverage starting in May.

Dr Prepaid insurance 5,700

Cr Cash 5,700

10. On April 28, paid $960 in cash for water utilities incurred in the month.

Dr Utilities expense 960

Cr Cash 960

11. Paid $15,800 in wages on April 29 for work done this month.

Dr Wages expense 15,800

Cr Cash 15,800

12. Received an electric utility bill on April 30 for $1,940 for usage in April; the bill will be paid next month.

Dr Utilities expense 1,940

Cr Accounts payable 1,940

User Shehabul Alam
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