(The book used is Principles of Accounting, 5th edition)

Transaction Analysis, general Journal, Ledger Accounts, and Trial Balance p10. Mount Prospect Nursery School Corporation provides baby-sitting and child-care programs. On January 31, 2014, the corporation had the following trial balance: Mount prospect nursery School Corporation Trial Balance January 31, 2014

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

Feb.2 Paid this months rent, $270.

Feb.3 Received fees for this months services, $650.

Feb.4 Purchased supplies on account, $85.

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

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

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

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

Feb.10 Billed customers who had not yet paid for this months services, $700.

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

Feb.13 Purchased and received playground equipment ordered on February 6 for cash, $1,000.

Feb.17 Purchased equipment on account, $290.

Feb.19 Paid this months utility bill, $145.

Feb.22 Received payment for one months services from customers previously billed, $500.

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

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

Feb.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: Supplies (115); Dividends (313); Service Revenue (411); Rent Expense (511); Gas and Oil Expense (512); Wages Expense (513); and Utilities Expense (514).

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

3. Enter the above transactions in the general journal (pages 17 and 18).

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 a trial balance as of February 28, 2014.

6. 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? .