Feb. $01$ Team Shirts purchases $200$ T$-$shirts at $$4$ each. They are

purchased on credit.

Feb. $05$ Sara hires a company to advertise his business. The total cost is

$$150.$ Sara pays $$100$ cash at the time of the service and will pay

the remaining $$50$ later.

Feb. $14$ Team Shirts pays $$150$ for $3$ months of insurance, with coverage

beginning on the date of payment.

Feb. $23$ Team Shirts sells $185$ T$-$shirts for $$10$ each. $170$ of these were

sold for cash and the remaining $15$ were sold on credit.

Feb. $28$ Team Shirts declares and pays a dividend of $$100.$

End of Month Adjustments

Part of the insurance cost, from the $14$th through the $28$th$,$ has been used$$

apparently to generate revenue. Therefore, we should expense $$25$ of the total

insurance cost; that is $$25=$ $$150$ x $1/6$th$,$ where $1/6$th $=15$ days$/90$ days