Clown A round, Inc., provides party entertainment for children of all ages. The company’s trial balance dated February 1, 2015, is shown below.
· 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 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 using T account format.
c) Prepare a trial balance
d) Prepare a balance sheet
e) Prepare an income statement