Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Adjustment Process Terry Mason organized The Fifth Season at the beginning of February 20Y4. During February, The Fifth Season entered into the following transactions: a.

image text in transcribed
image text in transcribed
Adjustment Process Terry Mason organized The Fifth Season at the beginning of February 20Y4. During February, The Fifth Season entered into the following transactions: a. Terry Mason invested $15,000 in The Fifth Season in exchange for common stock. b. Pald $2,700 on February 1 for an insurance premium on a 1-year policy. c. Purchased supplies on account, $900. d. Received fees of $28,500 during February e. Paid expenses as follows: wages, $10,800; rent, $3,200; utilities, $1,400; and Miscellaneous, $1,600. f. Pald dividends of $4,000. 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 $150 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. Balance Sheet Statement of Cash Flows Assets Liabilities Cash + Supplies Prepaid Insurance Accounts Payable a. Investment 15,000 b. Paid Insurance -2,700 2,700 Balances 12,300 2,700 Purchased supplies 900 900 Balances 12,300 900 2,700 900 d. Fees earned 28.500 Previous Statement of Cash Flows Uabilities Cash Supplies + Prepaid Insurance Accounts Payable Comm a. Investment 15,000 b. Pald Insurance -2,700 2,700 Balances 12,300 2,700 c. Purchased supplies 900 900 Balances 12,300 900 2,700 900 d. Fees earned 28,500 40.800 Balances 900 900 2,700 e. Paid expenses -17.000 23,800 2,700 Balances 900 900 f. Pald dividends -4,000 900 2,700 19,800 900 Balances al. Insurance expense Balances a2. Supplies expense Balances, February 28 Check My Work Email Instructor Save and Submit Assignment for Grading

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting For MBAs

Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally

5th Edition

1618532324, 9781618532329

More Books

Students also viewed these Accounting questions

Question

Explain what makes the structure of the human language so unique

Answered: 1 week ago

Question

Compare and contrast large and small power distance cultures

Answered: 1 week ago