The following information is provided for Terrapin Services, Inc. at January 31. 2014: Debit Credit Cash $ 275,000 Accounts receivable 150,000 Investment 50,000 Spare parts and supplies 30,000 Prepaid insurance 25,000 Land and Equipment (net) 325,000 Accounts payable $ 100,000 Interest Payable 100 Wage Payable 10,000 Note payable 225,000 Salaries payable 10,000 Common stock (no par) 450,000 Retained earnings 59,900 $855,000 $855,000 All February 2014 activity follows: 1. Provided services on account for a total of $225,000. 2. Used $25,000 in parts and supplies. 3. Sold an investment costing $50,000 for a $65,000 note receivable due May 15. 4. Paid accounts payable of $100,000. 5. Collected accounts receivable of $78,800. 6. Issued common stock for $75,000. 7. Purchased equipment costing $55,000. 8. Paid March rent of $25,000. 9. Paid $35.000 for employee services, $10,000 of that was for services performed in December of 2013. 10. Paid $300 for February newspaper advertisement. 11. Paid $2,000 on long-term note including $200 interest incurred ratably in January and February 2014. 12. Paid $60,000 on July 1, 2013 for one year's flood insurance coverage. Required: a. For each transaction, show the revenue/expense that would be recognized under the accrual method in one column and the revenue/expense that would be recognized under the cash method in a second column. b. Prepare appropriate journal entries for each transaction. c. Prepare a classified balance sheet at February 28, 2014 in good form