BUS103: Introduction to Financial Accounting

Green Hills Riding Stable, Incorporated, had the following balance sheet on 2010 June 30:

GREEN HILLS RIDING STABLE, INCORPORATED Balance sheet 2010 June 30
	Assets
Cash		$7,500
Accounts receivable		5,400
land		40,000
total assets		$52,900
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable		$800
Notes payable		40,000
Total liabilities		$40,800
Stockholders' equity:
Capital stock	$10,000
Retained earnings	2,100
Total stockholders' equity		12,100
Total liabilities and stockholders' equity		$52,900

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:

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.

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Source: Textbook Equity, https://learn.saylor.org/pluginfile.php/41229/mod_resource/content/8/AccountingPrinciples.pdf
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