Spreadsheet analysis of transactions and preparation of income statement and balance sheet. Refer to the information for Patterson Corporation for January, Year 13, in Problem 31 in Chapter 2. The following transactions occur during February.

(1) February 1: The firm pays the two-year insurance premium of $2,400 for fire and liability coverage beginning February 1 .

(2) February 5: Acquires merchandise costing $1,050,000. Of this amount, $1,455 is from suppliers to whom Patterson returned defective merchandise during January but for which the firm had not yet received a refund for amounts paid. Patterson Corporation acquired the remaining purchases on account.

(3) During February: Sells merchandise to customers totaling $1,500,000. Of this amount,

$4,500 was to customers who had advanced Patterson Corporation cash during January.

Patterson Corporation makes the remaining sales on account.

(4) During February: The cost of the goods sold in transaction (3) was $950,000.

(5) During February: Pays in cash selling and administrative expenses of $235,000.

(6) During February: Collects $1,206,000 from customer for sales previously made on account.

(7) During February: Pays $710,000 to suppliers of merchandise for purchases previously made on account.

(8) February 28: Recognizes rent expense for February.

(9) February 28: Recognizes depreciation expense of $2,500 for February. Patterson Corporation uses an Accumulated Depreciation account.

(10) February 28: Recognizes amortization expense of $450 on the patent. Patterson Corporation does not use an Accumulated Amortization account for patents.

(11) February 28: Recognizes an appropriate amount of insurance expense for February.

(12) February 28: Recognizes interest expense on the mortgage payable (see Problem 31 in Chapter 2).

(13) February 28: Recognizes income tax expense for February. The income tax rate is 40 percent. Income taxes for February are payable by April 15.

a. Using the transactions spreadsheet template available with this book, enter the balances in balance sheet accounts on February 1, Year 13 (see Problem 31 in Chapter 2). and the effects of the 1 2 transactions above. Be sure that you enter the dual effects of each transaction so that you maintain the balance sheet equality of assets with liabilities and shareholders' equity.

b. Prepare an income statement for the month of February. Year 13.

c. Prepare a comparative balance sheet as January 31 and February 28, Year 13.