• Clown Around, Inc., provides party entertainment for children of all ages. The following is the company’s trial balance dated February 1, current year. CLOWN AROUND, INC. TRIAL BALANCE FEBRUARY 1, CURRENT YEAR Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,420 Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,080 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 960 Capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 900 Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — Party revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,620 Salaries expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 996 Party food expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Travel expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 $5,880 $5,880 Clown Around engaged in the following transactions in FebruaryFeb. 2 Paid $900 in partial settlement of the outstanding account payable reported in the trial balance dated February 1. Feb. 6 Collected $1,080 in full settlement of the outstanding accounts receivable reported in the trial balance dated February 1. Feb. 18 Billed Sunflower Child Care $210 for clown services. The entire amount is due March 15. Feb. 26 Billed and collected $576 for performing at several birthday parties. Feb. 28 Paid clown salaries of $312 for work done in February. Feb. 28 Recorded and paid $48 for travel expenses incurred in February. Feb. 28 Declared and paid a $120 dividend to Ralph Jaschob, the company’s only shareholder a. Record the company’s February transactions in general journal form. Include a brief explanation of the transaction as part of each journal entry. b. Post each entry to the appropriate ledger accounts (use the T account format as illustrated in Prepare a trial balance dated February 28, current year. (Hint: Retained Earnings will be reported at the same amount as it was on February 1.