Chris Vining organized The Herbal Shoppe at the beginning of February 20Y4. During February, The Herbal Shoppe entered into the following transactions:

Chris Vining invested $32,875 in The Herbal Shoppe in exchange for capital stock.

Paid $7,350 on February 1 for an insurance premium on a 1-year policy.

Purchased supplies on account, $2,460.

Received fees of $39,710 during February.

Paid expenses as follows: wages, $18,600; rent, $3,100; utilities, $1,550; and miscellaneous, $1,705.

Paid dividends of $9,525.

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 $1,968 of supplies on hand as of February 28. Identify the adjusting entry for insurance as (a1) 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. If required, round your answer to the nearest dollar. Enter account decreases as negative amounts.

Statement of Cash Flows	Balance Sheet											Income Statement
	Assets					=	Liabilities	+	Stockholders' Equity
	Cash	+	Supplies	+	Prepaid Insurance	=	Accounts Payable	+	Capital Stock	+	Retained Earnings
a. Investment	32,875								32,875
b. Paid insurance	7,350				7,350
Balances	25,525				7,350				32,875
c. Purchased supplies			2,460				2,460
Balances	25,525		2,460		7,350		2,460		32,875
d. Fees earned	39,710										39,710	d.
Balances	65,235		2,460		7,350		2,460		32,875		39,710
e. Paid expenses	24,955										24,955	e.
Balances	40,280		2,460		7,350		2,460		32,875		14,755
f. Paid dividends	-9,525										-9,525
Balances	30,755		2,460		7,350		2,460		32,875		5,230
a1. SelectFees earnedInsurance expenseInvestmentPaid dividendsPaid expensesPaid insurancePurchased suppliesSupplies expenseItem 1												a1.
Balances
a2. SelectFees earnedInsurance expenseInvestmentPaid dividendsPaid expensesPaid insurancePurchased suppliesSupplies expenseItem 14												a2.
Balances, February 28
Statement of Cash Flows									Income Statement
a. Financing	$32,875								d. Fees earned			$39,710
b. Operating	-7,350								e. Wages expense			-18,600
d. Operating	39,710								e. Rent expense			-3,100
e. Operating	-24,955								e. Utilities expense			-1,550
f. Financing	-9,525								e. Miscellaneous expense			-1,705
Increase in cash	$30,755								a1. SelectFees earnedInsurance expensePrepaid insuranceNo effectItem 27
									a2. SelectDividendsSuppliesSupplies expenseNo effectItem 29