Part 3 Required: A. Prepare an Income Statement in good form. B. Calculate the new Retained Earnings balance. C. Prepare a Balance Sheet as of February 28th in good form. Part 2 Required: A. Prepare adjusting entries using the information below: Feb 28th One month of the fire insurance policy has expired. Feb 28th By the end of February, $4,750 of services had been provided to students who paid for advanced tutoring services on Feb. 18th Unpaid salaries at the end of February as $11,600. Feb 28th Feb 28th Supplies on hand at the end of February totaled $1,500. Feb 28th Depreciation on the building for the month was $625. Feb 28th Accrued Interest associated with note payable of $1,250. Stellar Student Tutoring Unadjusted Trial Balance February 28, 2020 Debit Account Credit Cash 40,820 Accts. Receivable 6,840 Supplies 9,100 Prepaid Insurance 7,800 Land 68,000 Building 150,000 Is Accounts Payable A 1,450 Unearned Revenue 10,500 125,000 Note Payable Common Stock Retained Earnings 100,000 I s 27,400 Dividends 2,000 Tutoring Service Revenue 35,840 Wage Expense 12,300 Utility Expense 3,330 Total $ 300,190 $ 300,190 Comprehensive Accounting Cycle Problem In January, Sammy Bearkat organized a corporation to provide tutoring services to students The company, called Stellar Student Tutoring began operations immediately. The business general ledger balances are shown below: Stellar Student Tutoring Post-Closing Trial Balance January 31, 2020 Debit $32,000 11,000 5,600 Accounts Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals 4,200 85,000 27.400 $116,600 $116,600 During February 2020, the following transactions occur: Feb 14 The corporation issued an additional 10,000 shares of capital stock to Harris Corporation in exchange for $15,000 cash Feb 15 Purchased a building from Sweeney Enterprise for $150,000. A cash payment of $25,000 was made at the time of the purchase, and a note payable was issued for the remaining balance. Feb 1 Paid $7,800 for fire insurance on building for next 3 years. Feb 9th Purchased additional supplies on account for $3,500 Feb 11th Billed students $35,840 for tutoring services provided during the first half of February Feb 16th Paid $12,300 in salaries earned by employees during the first half of February Feb 18th Received $10,500 cash in advance from students for tutoring services to be provided in the future Collected cash from accounts receivable of $40,000. Feb 22nd Feb 25th Paid $3,330 for utilities during period. Feb 25 Paid $6,250 cash on accounts payable. Feb 28th Declared and paid a $2,000 dividend. Sammy Bearkat uses the following accounts to record transactions for Stellar Student Tutoring. Stellar Student Tutoring Account Listing Cash Accts. Receivable Supplies Prepaid Insurance Land Building Accumulated Depreciation Accounts Payable Unearned Revenue Wage Payable Interest Payable Note Payable Common Stock Retained Earnings Dividends Tutoring Service Revenue Wage Expense Utility Expense Insurance Expense Supply Expense Depreciation Expense Interest Expense