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:

1. Terry Mason invested $26,250 in The Fifth Season in exchange for capital stock.
2. Paid $5,250 on February 1 for an insurance premium on a 1-year policy.
3. Purchased supplies on account, $2,640.
4. Received fees of $60,575 during February.
5. Paid expenses as follows: wages, $22,200; rent, $3,700; utilities, $1,850; and miscellaneous, $2,035.
6. Paid dividends of $9,660.

There was $2,244 of supplies on hand as of February 28.

Statement of Cash Flows	Balance Sheet
	Assets					=	Liabilities	+	Stockholders' Equity
	Cash	+	Supplies	+	Prepaid Insurance	=	Accounts Payable	+	Common Stock	+	Retained Earnings
a. Investment	26,250								26,250
b. Paid insurance	5,250				5,250
Balances	21,000				5,250				26,250
c. Purchased supplies			2,640				2,640
Balances	21,000		2,640		5,250		2,640		26,250
d. Fees earned	60,575										60,575
Balances	81,575		2,640		5,250		2,640		26,250		60,575
e. Paid expenses	29,785										29,785
Balances	51,790		2,640		5,250		2,640		26,250		30,790
f. Paid dividends	-9,660										-9,660
Balances	42,130		2,640		5,250		2,640		26,250		21,130
a1. Insurance expense					-438						-438
Balances	42,130		2,640		4,812		2,640		26,250		20,692
a2. Supplies expense			-396								-396
Balances, February 28	42,130		2,244		4,812		2,640		26,250		20,296
Statement of Cash Flows									Income Statement
a. Financing	$26,250								d. Fees earned			$60,575
b. Operating	-5,250								e. Wages expense			-22,200
d. Operating	60,575								e. Rent expense			-3,700
e. Operating	-29,785								e. Utilities expense			-1,850
f. Financing	-9,660								e. Miscellaneous expense			-2,035
Increase in cash	$42,130								a1. Ins. exp.			-438
									a2. Supplies exp.			-396
									Net income			$29,956

Prepare an income statement for February.

The Fifth Season
Income Statement
For the Month Ended February 28, 20Y4
Fees earned		$
Operating expenses:
Wages expense	$
Rent expense
Utilities expense
Supplies expense
Insurance expense
Miscellaneous expense
Total expenses
Net income		$

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An income statement lists revenues and expenses. When revenues are more than the expenses, the difference is net income.

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

The Fifth Season
Statement of Stockholders Equity
For the Month Ended February 28, 20Y4
	Common Stock	Retained Earnings	Total
Balance, February 1	$	$	$
Issued common stock
Retained earnings
Dividends
Balance, February 28	$	$	$