Transactions Using Accrual Accounting

Chris Vining organized The Herbal Shoppe at the beginning of February 20Y4. During February, The Herbal Shoppe entered into the following transactions:

Chris Vining invested $25,000 in The Herbal Shoppe in exchange for capital stock.

Paid $4,200 on February 1 for an insurance premium on a 1-year policy.

Purchased supplies on account, $1,200.

Received fees of $36,500 during February.

Paid expenses as follows: wages, $12,000; rent, $2,000; utilities, $1,000; and miscellaneous, $1,100.

Paid dividends of $7,500.

Record the preceding transactions using the integrated financial statement framework. After each transaction, enter a balance for each item. If an amount box does not require an entry, leave it blank. Enter account decreases and net cash outflows as negative amounts.

Statement of Cash Flows

Balance Sheet

Income Statement

Assets

=

Liabilities

+

Stockholders' Equity

SelectAccounts PayableCashItem 1

+

SelectAccounts ReceivableSuppliesItem 2

+

SelectCapital StockPrepaid InsuranceItem 3

=

SelectAccounts PayableRetained EarningsItem 4

+

SelectAccounts ReceivableCapital stockItem 5

+

SelectAccounts PayableRetained EarningsItem 6

a. SelectFees earnedInvestmentPaid dividendsPaid expensesPaid insurancePurchased suppliesItem 7

b. SelectFees earnedInvestmentPaid dividendsPaid expensesPaid insurancePurchased suppliesItem 14

Balances

c. SelectFees earnedInvestmentPaid dividendsPaid expensesPaid insurancePurchased suppliesItem 27

Balances

d. SelectFees earnedInvestmentPaid dividendsPaid expensesPaid insurancePurchased suppliesItem 40

d.

Balances

e. SelectFees earnedInvestmentPaid dividendsPaid expensesPaid insurancePurchased suppliesItem 53

e.

Balances

f. SelectFees earnedInvestmentPaid dividendsPaid expensesPaid insurancePurchased suppliesItem 66

Balances

Statement of Cash Flows

Income Statement

a. SelectOperatingInvestingFinancingNo effectItem 79

$

d. SelectFees earnedRetained earningsUtilities expenseNo effectItem 81

$

b. SelectOperatingInvestingFinancingNo effectItem 83

e. SelectFees earnedPrepaid insuranceWages expenseNo effectItem 85

d. SelectOperatingInvestingFinancingNo effectItem 87

e. SelectFees earnedSuppliesRent expenseNo effectItem 89

e. SelectOperatingInvestingFinancingNo effectItem 91

e. SelectAccounts payableCapital stockUtilities expenseNo effectItem 93

f. SelectOperatingInvestingFinancingNo effectItem 95

e. SelectDividendsMiscellaneous expenseRetained earningsNo effectItem 97

SelectIncrease in cashDecrease in cashNo effectItem 99

$