Reference no: EM132592886

Hacienda Ecuestre del Caribe began operations 2 years ago and as of December 31, 2019, the company had 60 cages (mangers) of 10'X10 'in the stables, 3 outdoor riding schools to train, work the horses and offer the lessons. In addition, it had the following copies:

cost acquisition data                                 Useful life

2 mares $ 500 each 1/1/2019                    10 years each

5 fine pitch horses $ 2,100 each 1/1/2019  12 years each

Some of the costs associated with the business are the following:

Food (feed, fodder and vitamins) - $ 200 per month for each copy.

Veterinary care and vaccinations - $ 195 annually for each copy.

Horseshoes: $ 50 every two months for each horse (mares every three months)

Maintenance staff - $ 250 a month for each copy.

Training - $ 300 a month for each horse

Insurance: $ 600 annually

• On January 2, 2020, Hacienda Ecuestre del Caribe acquired a new fine step horse for $ 3,500. Management understands that the purchase of this copy will increase the income and exposure of the business by having its past track record in various competitions. Additionally, the ranch paid $ 175 in veterinary costs to confirm the horse's health prior to the final purchase and $ 50 for insurance and transportation. A useful life of 10 years was estimated for this specimen.

• On January 5, 2020, the company completed construction of a fourth riding school, the first indoors, at a cost of $ 1,700. A useful life of 15 years with no residual value was estimated. Construction of the riding school had started in October of the previous year. This riding arena will allow the horses to be trained or offer classes during periods of rain.

• On June 27, 2020, one of the mares gave birth to a foal. The costs related to the gestation of the animal were approximately $ 2,500, and included the costs of renting the stallion and those related to hiring an expert goat vet to attend the birth. On July 5, the second mare gave birth to another foal.

• Maturity is not reached until 4 calendar years when they stop being foals, at this age they will begin to tame and ride. Unfortunately one of the foals died unexpectedly on August 9, 2020. The company paid $ 200 to have the foal properly buried.

• On August 29, La Hacienda sold 1 of its mares to another farm. The buyer paid $ 400 for the mare and $ 50 for insurance to transport the mare.

• On December 25, La Hacienda exchanged a horse of the originals and received in exchange a mare (she gave birth to 3 champion horses of the Paso Fino) plus $ 700 in cash. At the time of the transaction, the horse from La Hacienda Ecuestre del Caribe had a fair market value of $ 2,200.

Question 1: Make a journal (general journal) using Excel with 4 columns with the following titles: date, journal entry, DR (debit) and CR (credit).

Question 1: Provide the journal entry in EXCEL (if applicable) for the transactions listed below. If a journal entry is not required, write DOES NOT APPLY. In completing this part, any additional assumptions that have been made should be included in the explanation of the journal entry.

In addition, you must provide the complete reference of the encoding that justifies the entry.

TRANSACTIONS OF 2019:

• The original purchase of the horses and mares in 2019.
• All Hacienda costs incurred during 2020 (horse care and training costs must be recorded with a single annual entry at the end of the year)
• All necessary adjustment entries as of December 31, 2020