edger for the accounts in the trial balance

Problem: Transaction analysis, General Ledger, Ledger Accounts and Trial Balance

P. The Acorn Nursery School Company provides baby-sitting and child-care programs. On January 31, 20xx, the company had the following trial balance

Acorn Nursery School Company Trial Balance January 31, 20xx

Cash (111) $1,870 Accounts Receivable (113) $1,700 Equipment (141) $1,040 Buses (143) 17,400 Notes Payable (211) $15,000 Accounts Payable (212) $1,640 J. Wells, Capital (311) $5,370 ________ _______ $22,010 $22,010 __________ ________

During the month of February, the company completed the following transactions:

Feb 2 Paid the months rent, $270 3 Received fees for the this months services, $650 4 Purchased supplies on account, $85 5 Reimbursed the bus driver for gas expense, $40 6 Ordered playground equipment, $1,000 8 Made a payment on account, $170 9 Received cash from customers on account, $1,200 10 Billed customers who had not yet paid for the months services, $700 11 Paid for supplies purchased on February 4 13 Received and purchased playground equipment ordered on February 6 for cash , $1,000 17 Purchased equipment on account, $290 18 Paid this months utility bill, $145 22 Received cash for one months services from customers previously billed, $500 26 Paid part-time assistants for services, $460 27 Purchased gas and oil for the bus on account, $35 28 Paid for one-year insurance policy, $290

28 Declared and paid a dividend of $110

Required: 1. Open accounts in the ledger for the accounts in the trial balance plus the following ones: (115); J. Wells withdrawals (313); Service Revenue (411); Rent Expense (511); Gas and Oil Expense (512); Wages Expense (513); and Utilities Expense (514) 2. Enter the January 31, 20xx account balances from the trial balance 3. Enter the above transactions in the general journal 4. Post the entries to the ledger accounts. Be sure to make the appropriate posting references in the journal and ledger as you post 5. Prepare the a trial balance as of February 28, 20xx 6. User insight: Examine the transactions for February 3, 9, 10, and 22. What were the revenues? What business issue might you see arising from the differences in these numbers?

Ledger for the accounts in the trial balance Accounting Basics