Reference no: EM132710709

Problem - Transactions using accrual accounting

Terry Mason organized The Fifth Season at the beginning of February 20Y4. 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.

Required - Record the preceding transactions using the integrated financial statement framework. After each transaction, you should enter a balance for each item.