Question

In: Accounting

step 1 Druring febraury 2013 Derma Care entered the following transactions, use a intergal financial statement...

step 1

Druring febraury 2013 Derma Care entered the following transactions, use a intergal financial statement framework.

Marilyn McColley invested $30,000 in Derma Care in exchange for capital Stocks.

Paid $7,200 on February 1 for insurance premium on a 1-year policy.

Purchased supplies on account, $1,200.

Received fees of $43,500 during February.

Paid expenses as follows; $8,000; rent, $2,500; utilities, $1,000; and miscellaneous, $850

Paid dividends of $5,000

Step 2

Using the data from Exercise 3-1, record the adjusting entries at the end of February to record the insurance expenses and supplies expenses. There was $800 of supplies on hand as of February 28. Identify the adjusting entry for insurance as (a1) and the supplies as (a2).

Step 3

Financial statement Using the data from Exercises 3-1 and 3-2, prepare financial statements for February , including income statement, retained earnings statement, balance sheet and statement of cash flows.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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