NOP Corporation recorded the following transactions in February 2024:

1. February 1: Purchased inventory on account for $7,000.
2. February 7: Paid $2,000 for utilities.
3. February 13: Received $3,500 from customers on account.
4. February 19: Paid $4,500 to suppliers on account.
5. February 25: Declared and paid dividends of $1,000.

Requirements:

1. Journalize the transactions.
2. Post the journal entries to the general ledger.
3. Prepare a trial balance as of February 28, 2024.
4. Prepare an income statement for February 2024.
5. Analyze the effect of dividends on retained earnings.