Green Hills Riding Stable, Incorporated, had the following balance sheet on 2010 June 30:
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GREEN HILLS RIDING STABLE, INCORPORATED |
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Assets |
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Cash |
$7,500 |
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Accounts receivable |
5,400 |
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Land |
40,000 |
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Total assets |
$52,900 |
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Liabilities and Stockholders” Equity |
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Liabilities: |
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Accounts payable |
$800 |
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Notes payable |
40,000 |
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Total liabilities |
$40,800 |
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Stockholders” equity: |
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Capital stock |
$10,000 |
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Retained earnings |
2,100 |
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Total stockholders” equity |
12,100 |
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Total liabilities and stockholders” equity |
$52,900 |
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a. Prepare the journal entries to record the transactions for July 2010.
b. Post the journal entries to the ledger accounts after entering the beginning balances in those accounts. Insert cross-indexing references in the journal and ledger. Use the following chart of accounts:
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100 |
Cash |
320 |
Dividends |
|
103 |
Accounts Receivable |
402 |
Horse Boarding Fees Revenue |
|
130 |
Land |
404 |
Riding and Lesson Fees Revenue |
|
140 |
Buildings |
507 |
Salaries Expense |
|
200 |
Accounts Payable |
513 |
Feed Expense |
|
201 |
Notes Payable |
540 |
Interest Expense |
|
300 |
Capital Stock |
568 |
Miscellaneous Expense |
|
310 |
Retained Earnings |
c. Prepare a trial balance.