Spicewood Stables Inc. was established in Austin, Texas, onApril 1, 2019. The company provides stables, care for animals andgrounds for riding and showing horses. The following transactionsare provided for your review:
- Received contributions from five investors of $50,000 in cash($10,000 each), building (valued at $100,000), land (valued at$60,000) and supplies (valued at $2,000). Issued stock (withoutpaid-in capital).
- Built a small barn for $42,000. The company paid half theamount in cash on April 1, 2019 and signed a three-year notepayable for the balance.
- Provided $15,260 in animal care services for customers, all oncredit.
- Rented stables to customers for April, received cash of$13,200.
- Received from a customer $1,500 in cash to board her horse inMay, June and July.
- Purchased supplies on account for $3,210 to be used in thesummer.
- Paid $840 in cash for water utilities incurred in themonth.
- Paid $1,700 in accounts payable for previous purchases.
- Received $1,000 in cash from customers on accountsreceivable.
- Paid $4,000 in cash for wages to employees whoworked during the month.
- At the end of the month, purchased a two-year insurance policyfor $3,600 cash.
- Received an electric utility bill for $1,200 forusage in April; the bill will be paid next month.
- Declared and paid $100 cash dividend to each ofthe five investors at the end of the month.
- Record in the T-accounts the effects of each transaction forSpicewood Stables in April 2019, referring each transaction in theaccounts with the transaction letter. Compute and show theunadjusted ending balances in the T-accounts.
