Obj. $2$

Terry Mason organized The Fifth Season at the beginning of February $20$Y$4.$ 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.

Obj. $3$

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 $($a$1)$ and supplies as $($a$2).$