21. The Montgomery Shoe Shine Stand in Union Station, employing three full-time and four part-time persons, has the following balance sheet for February 1, 2006: 100 Assets Cash $300 Supplies inventory Fixed assets (stand) 2,000 Total Assets $2,400 Liabilities and Owner's Equity Accounts payable $ 80 Wages payable Owners' equity 1,820 Total Liabilities and Owners' Equity $2,400 The following transactions occur during the month of February: 500 Total cash revenue for shoe shines was $1,830. The stand does not shine shoes on credit. Total tips given to the employees by customers was $450. The stand purchased $300 of supplies and had an inventory of $150 as of February 28. The stand paid out $1,300 in cash for wages during the month and had wages payable at the end of the month of $450. The stand paid a quarterly rental fee to Union Station of $300 for the months of February, March, and April 2006. The owner of the stand concluded that the value of the stand had declined by $100 during February. a. Create T-accounts as required. Record the opening balances as of Feb- ruary 1 and then make the entries to record the transactions listed. b. Construct a balance sheet as of February 28, and an income statement for the month of February 2006. c. Then consider the following questions: 1. What is the significance of the increase in assets during the month? 2. How did the Montgomery Shoe Shine Stand perform during the month? Would your answer be different if you knew that the Stand's owner was not among those to whom wages were paid during the month? 3. What is your assessment of the Stand's financial position at month end