E3-1 Transactions using accrual accounting 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. Paid $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. Paid dividends of $4,000. Record the preceding transactions using the integrated financial statement framework. After each transaction, you should enter a balance for each item. E3-2 Adjustment process Using the data from Exercise 3-1, 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 (a1) and supplies as (a2). E3-3 Financial statements Using the data from Exercises 3-1 and 3-2, prepare financial statements for February, including income statement, statement of stockholders' equity, balance sheet, and statement of cash flows