Question

Financial Statements The transactions and integrated financial statement framework for Terry Mason for February 20Y4 appear below: 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 $27,750 in The Fifth Season in exchange for capital stock. Paid $6,300 on February 1 for an insurance premium on a 1-year policy. Purchased supplies on account, $2,460. Received fees of $61,110 during February. Paid expenses as follows: wages, $20,400; rent, $3,400; utilities, $1,700; and miscellaneous, $1,870. Paid dividends of $9,525. There was $1,353 of supplies on hand as of February 28.

Prepare an income statement for February.

Prepare a balance sheet for February.

Prepare a statement of cash flows for February. If your answer is zero enter "0". Enter net cash outflows as negative amounts

Prepare a retained earnings statement for February. If an amount box does not require an entry, leave it blank or enter zero "0"

Answer 1

INCOME STATEMENT
Fees received			61110
Less: Operating expense
Wages			20400
Rent			3400
Utilities			1700
Misc. expensse			1870
Supplies expense			1,107
Insurance expense			525
Net Income			32108
RETAINED EARNING
Beginning balance			0
Add: Net income earned			32108
Less: Dividend paid			9525
Ending balance			22583
CASHFLOW STATEMENT:
Cashflows from Operating Activities:
Cash reeived from fees revenue			61110
Cash paid for wages			-20400
Cash paid for rent			-3400
Cash paid for utilities			-1700
Cash paid for misc. expense			-1,870
Cash paid for Annual insurance			-6,300
Net cash provided by Operating Activities				27440
Cashflows from Investing Activities				0
Cashflows from Financing Activities
Issue of Common Stock			27750
Dividend paid			-9525
Net cash inflows from financing activities				18225
Net cash inflow during the year				45665
Add: Beginning balance				0
Less: Ending balance				45665
BALANCE SHEET
Cash				45665
Supplies				1353
Insurance				5775
Total Assets				52793
Liabilities:
Accounts Payable				2460
Stockholder' equity:
Common Stock			27750
Retained earning			22583
Total Stockholder's equity				50333
Total liabilities and stockholder's equity				52793