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I hope you can help me correct my mistakes and I will give you a good comment Terry Mason organized The Fifth Season at the

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Terry Mason organized The Fifth Season at the beginning of February 2014. During February, The Fifth Season entered into the following transactions: a. Terry Mason invested $29,375 in The Fifth Season in exchange for capital stock. b. Paid $5,460 on February 1 for an insurance premium on a 1-year policy. c. Purchased supplies on account, $1,560. d. Received fees of $56,295 during February e. Paid expenses as follows: wages, $15,000; rent, $2,500; utilities, $1,250; and miscellaneous, $1,375. 1. Paid dividends of $7,770. There was $1,248 of supplies on hand as of February 28. Balance Sheet Statement of Cash Flows Assets Liabilities Stockholders' Equity Cash + Supplies + Prepaid Insurance Accounts Payable + Common Stock + Retained Earnings a. Investment 29,375 29,375 b. Paid insurance -5,460 5,460 Balances 23,915 5,480 29,375 c. Purchased supplies 1,560 1,560 Balances 23,915 1,560 5,460 1,560 29,375 d. Fees earned 56,295 56,295 Balances 80,210 1,560 5,460 1,560 29,375 56,295 e. Paid expenses -20,125 -20,125 Balances 60,085 1,560 5,460 1,560 29,375 36,170 1. Paid dividends -7,770 -7,770 Balances 52,315 1,560 5,460 1,560 29,375 28,400 al. Insurance expense -455 -455 Balances 52 315 1,560 5.005 1,560 29,375 27,945 a2. Supplies expense -312 -312 Balances, February 28 52,315 1,248 5,005 1,560 29 375 27,633 Statement of Cash Flows Income Statement a. Financing $29,375 d. Fees earned $56,295 b. Operating -5,460 e. Wages expense -15,000 d. Operating 56,295 e. Rent expense -2,500 e. Operating -20,125 e. Utilities expense -1,250 1. Financing -7,770 e. Miscellaneous expense -1,375 Increase in cash $52,315 al. Ins. exp. -455 a2. Supplies exp. -312 Net income $35,403 Prepare an income statement for February. The Fifth Season Income Statement For the Month Ended February 28, 2014 Fees earned 56,295 Operating expenses: Wages expense 15,000 Rent expense 2,500 Utilities expense 1,250 Supplies expense 1,375X Insurance expense 455 Miscellaneous expense 312 X 20,892 Total expenses Net income 35,403 Prepare a balance sheet for February. The Fifth Season Balance Sheet February 28, 2014 Assets 1.248 x Cash Supplies Prepaid insurance 5,005 X 52,315 X Total assets 58,568 Liabilities Accounts payable 1,560 Stockholders' Equity 29,375 Common stock Retained earnings 27,633 Total stockholders' equity 57,008 Total liabilities and stockholders' equity 58,568 Prepare a statement of cash flows for February. If your answer is zero enter "O". Enter net cash outflows as negative amounts. The Fifth Season Statement of Cash Flows For the Month Ended February 28, 2014 Cash flows from operating activities: Cash received from customers 35,102 x Cash paid for expenses -1,248 X Net cash flows from operating activities -5,00 X Cash flows from financing activities: Cash received for common stock 1,560 x Cash paid for dividends 30,710 X Net cash flows from financing activities 21,605 Change in cash during February 52,315 Cash as of February 1, 2014 Cash as of February 28, 2014 52,315 0

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