Adjustment Process Alex Vera organized Succulent Express at the beginning of February 20Y4. During February, Succulent Express entered into the following transactions: a. Terry Mason invested $30,000 in Succulent Express in exchange for common stock. b. Paid $5,400 on February for an insurance premium on a one-year policy. c. Purchased supplies on account, $1,800. d. Received fees of $57,000 during February. e. Paid expenses as follows: wages, $21,600; rent, $6,400; utilities, $2,800; and miscellaneous, $3,200. f. Paid dividends of $8,000. The transactions above have already been recorded in the integrated financial statement framework below. Record the adjusting entries at the end of February to record the insurance expense and supplies expense. There was $300 of supplies on hand as of February 28. Identify the adjusting entry for insurance as (al) and supplies as (a2). Use the integrated financial statement framework below. After each transaction, enter a balance for each item. If an amount box does not require an entry, leave it blank. Enter account decreases as negative amounts using the minus sign. Assets + Balance Sheet = Liabilities Prepaid Accounts Insurance Payable Cash + Supplies + + Stockholders' Equity Common Retained + Stock Earnings 30,000 a. Investment b. Paid insurance 30,000 (5,400) 24,600 5,400 5,400 Balances 30,000 1,800 1,800 1,800 5,400 1,800 30,000 Purchased C. supplies Balances d. Fees earned Balances e. Paid expenses Balances 1,800 5,400 1,800 30,000 24,600 57,000 81,600 (34,000) 47,600 (8,000) 39,600 57,000 57,000 (34,000) 23,000 (8,000) 15,000 1,800 5,400 1,800 30,000 f. Paid dividends Balances 1,800 5,400 1,800 30,000 al. Balances a2. Balances, February 28 Statement of Cash Flows a. Financing $30,000 b. Operating (5,400) d. Operating 57,000 Income Statement d. Fees earned $57,000 Wages e. (21,600) expense e. Rent expense (6,400) Utilities e. (2,800) expense Miscellaneous e. (3,200) expense e. Operating (34,000) f. Financing (8,000) Increase in cash $39,600 al. a2