IS$-2$ Adjustment Process

obj. $3$

Using the data from Exercise $3-1,$ record the adjustments at the end of February to record the insurance expense and supplies expense. There were $$200$ of supplies on hand as of February $28.$ Identify the adjustment for insurance as $($a$1)$ and supplies as $($a$2).$ Enter the net income under the Income Statement column after recording both adjustments.

Ew$-1$ Transactions Using Acerual Accounting

Obj. $2$

Alex Vera organized Succulent Express at the beginning of February $20$Y$4.$ During February, Succulent Express entered into the following transactions:

a$.$ Terry Mason invested $$50,000$ in Succulent Express in exchange for common stock.

b$.$ Paid $$4,800$ on February $1$ for an insurance premium on a one$-$year policy.

c$.$ Purchased supplies on account, $$1,500.$

d$.$ Received fees of $$62,000$ during February.

e$.$ Paid expenses as follows: wages, $$22,100$; rent, $$5,200$; utilities, $$2,600$; and miscellaneous, $$3,100.$

f$.$ Paid dividends of $$4,000.$

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