Prepare all February journal entries and adjusting entries.

February Transactions

02/26 JWC recovered $400 cash from the customer whose account had previously been written off (see 02/18).

02/27 A $400 utility bill for February arrived. It is due on March 15 and will be paid then.

02/28 JWC declared and paid a $500 cash dividend.

02/28 Paid in full the amount owed for the 02/21 purchase of inventory.

02/29 (adjusting 1) Record the $1,500 employee salary that is owed but will be paid March 1.

02/29 (adjusting 2) JWC decides to use the aging method to estimate uncollectible accounts. JWC determines 8% of the ending accounts receivable balance is the appropriate end of February estimate of uncollectible accounts.

02/29 (adjusting 3) Record February interest expense accrued on the note payable.

02/29 (adjusting 4) Record one months interest earned Kit Kats note (see 02/01)