Question

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:

Terry Mason invested $26,375 in The Fifth Season in exchange for common stock.

Paid $5,460 on February 1 for an insurance premium on a 1-year policy.

Purchased supplies on account, $1,560.

Received fees of $37,035 during February.

Paid expenses as follows: wages, $15,000; rent, $2,500; utilities, $1,250; and miscellaneous, $1,375.

Paid dividends of $9,525.

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.

Answer 1

Cash Particulars Common Stock Prepaid Insurance Supplies Fees Earned Wages Expense Utilities expense Rent expense Miscellaneous expense Dividends Balance Fees Earned Particulars Debit in $ Credit in $ Debit in Credit in $ Cash Balance Debit in $ Credit in $ Debit in Credit in $ 26375 37035 37035 26375 546020915 156019355 56390 15000 41390 125040140 2500 37640 1375 36265 9525 26740 Balance Wages Expense Particulars Debit in $ Credit in $ Debit in Credit in $ Cash 37035 15000 15000 Balance Rent expense Particulars Debit in $ Credit in $ Debit in Credit in $ Cash 2500 2500 Common Stock Particulars Cash Balance Utilities expense Particulars Debit in $ Credit in $ Debit in Credit in $ Cash Balance Debit in $ Credit in $ Debit in Credit in $ 26375 26375 1250 1250 Prepaid Insurance Particulars Cash Balance Miscellaneous expense Particulars Debit in $ Credit in $ Debit in Credit in $ Cash Balance Debit in $ Credit in $ Debit in Credit in $ 5460 5460 1375 1375 Supplies Particulars Cash Balance Dividends Particulars Debit in $ Credit in $ Debit in Credit in $ Cash Balance Debit in $ Credit in $ Debit in Credit in $ 1560 1560 9525 9525