P$10.$ Mount Prospect Nursery School Company provides baby$-$sitting and child$-$care

programs. On January $31,2014,$ the company had the following trial balance:

Mount Prospect Nursery School Company

Trial Balance

January $31,2014$

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

Feb. $2$ Paid this month's rent, $$270.$

$3$ Received fees for this month's services, $$650.$

$4$ Purchased supplies on account, $$85.$

$5$ Reimbursed the bus driver for gas expenses, $$40.$

$6$ Ordered playground equipment, $$1,000.$

$8$ Made a payment on account, $$170.$

$9$ Received payments from customers on account, $$1,200.$

$10$ Billed customers who had not yet paid for this month's services, $$700.$

$11$ Paid for the supplies purchased on February $4.$

$13$ Purchased and received playground equipment ordered on February $6$ for

cash, $$1,000.$

$17$ Purchased equipment on account, $$290.$

$19$ Paid this month's utility bill, $$145.$

$22$ Received payment for one month's services from customers previously billed,

$$500.$

$26$ Paid part$-$time assistants for services, $$460.$

$27$ Purchased gas and oil for the bus on account, $$325.$

$28$ Made a cash withdrawal of $$110.$

REQUIRED

Open accounts in the ledger for the accounts in the trial balance plus the following

ones: Supplies $(115)$; J$.$ Ziden, Withdrawals $(313)$; Service Revenue $(411)$; Rent

Expense $(511)$; Gas and Oil Expense $(512)$; Wages Expense $(513)$; and Utilities

Expense $(514).$

Enter the January $31,2014,$ account balances from the trial balance.

Enter the above transactions in the general journal $($Pages $17$ and $18).$

Post the entries to the ledger accounts. Be sure to make the appropriate posting

references in the journal and ledger as you post.

Prepare a trial balance as of February $28,2014.$

BUSINESS APPLICATION $>$ Examine the transactions for February $3,9,10,$ and $22.$

What were the revenues, and how much cash was received from the revenues? What

business issue might you see arising from the differences in these numbers?