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 engaged in the following transactions in February.
Feb. 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 Exhibit 3-8).
c. Prepare a trial balance dated February 28, current year.
d. Will the $120 dividend paid on February 28 decrease the company's income? Explain.

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CLOWN AROUND, INC. TRIAL BALANCE FEBRUARY 1, CURRENT YEAR $3,420 1,080 $ 960 2,400 900 Capltal stock Dividends 1,620 Party food expense Travel expense 996 28 96 $5,880 $5,880