Question

Transactions Using Accrual Accounting Terry Mason organized The Fifth Season at the beginning of February 2014. During February, The Fifth Season entered into the following transactions: a. Terry Mason invested $28,125 in The Fifth Season in exchange for common stock. b. Paid $7,350 on February 1 for an insurance premium on a 1-year policy. C. Purchased supplies on account, $3,180. d. Received fees of $53,620 during February e. Paid expenses as follows: wages, $16,800; rent, $2,800; utilities, $1,400; and miscellaneous, $1,540. f. Paid dividends of $9,795. Record the preceding transactions using the integrated financial statement framework. After each transaction, enter a balance for each item. If an amount box does not require an entry, leave it blank. Enter account decreases and net cash outflows as negative amounts. Balance Sheet

Answer 1

fupplies - Porepaid - Page no Answer Balance Sheet Statement of Agaeta I Liabilitid + stockholder's Equity Cashflows Accounts Common Retained cash inscano Payable stockt Earning Investment $28,125 $- $ $- $ $28125 b) Prepaid insurance -$4350 $ $7350 Balonces $20,775 $7350 $28, 125 c) Pucholed supplies $3180 $ $ 3180 Balances $ 20,775 $3180 4350 $3180 $28,125 Feed Earned $53620 $ Ś $ 53,620 Balances $.74395 $3180 $7350 $3180 $28,125 $ 53,620 -$22540 $- -$22540 $51855 $3180 $7350 $3180 $28, 125 $31,080 f) paid dividends 1-$9795 $ $ - $ - -$9795 Balances $42060 $3180 $1350 $3180 $28,125 $21285 A w - e paid Expenles Balances

Pageno Ştatementaf califlory Amount Income statement Amount a) Financing $28125 d) Feel Forned $ 53620 b) operating $ - 735 0 e) wagel Expenle $ - 16800 ( d) operating $ 53620 Rent Expends $- 2800 operating $ - 22540 Outility expensk $-1400 f financing $ -9795 9795 @Miscelane cras $-1540 Increak in $42,060 Netincome $31,080 Cash expende