Clown Around, Inc., provides party entertainment for children of all ages. The companys trial balance dated February 1, 2011, is shown below.

Clown Around engaged in the following transactions in February:

Feb. 2 Paid $750 in partial settlement of the outstanding account payable reported

in the trial balance dated February 1.

Feb. 6 Collected $900 in full settlement of the outstanding accounts receivable reported

in the trial balance dated February 1.

Feb. 18 Billed Sunflower Child Care $175 for clown services. The entire amount is

due March 15.

Feb. 26 Billed and collected $480 for performing at several birthday parties.

Feb. 28 Paid clown salaries of $260 for work done in February.

Feb. 28 Recorded and paid $40 for travel expenses incurred in February.

Feb. 28 Declared and paid a $100 dividend to Ralph Jaschob, the companys

only shareholder.

Questions

Q(1) Record the companys February transactions in general journal form. Include a brief explanation of the transaction as part of each journal entry.

Q(2)Post each entry to the appropriate ledger accounts (the T account format).

Q(3) Prepare a trial balance dated February 28, 2011.

CLOWN AROUND, INC. TRIAL BALANCE FEBRUARY 1, 2011 $2,850 900 $ 800 2,000 750 Cash..... Accounts receivable Accounts payable... Capital stock Retained earnings Dividends ..... Party revenue Salaries expense Party food expense Travel expense.. 1,350 830 240 80 $4,900 $4,900