accounts receivable Ref Debit Credit Balance Balance Ppd Insurance Ref Debit Balance Credit Balance Katy's Cooking School provides training to individuals who pay tuition direclty to the school. Katy's also ! offers training to various groups in off-site locations. Starting from the trial balance prepare the adjusting! entries and post them to the general ledger and then preparea an Adjusted Trail Balance and then prepare the financial Statements. Cash Katys Cooking School Ref Debit Credit Unadjusted Trail balance December 31 2018 Debit Credit Cash 34,000 Accounts receivable Teaching supplies 8,000 Teaching Supplies Ppd Insurance 12,000 Ref Debit Credit Ppd Rent 3,000 Prof Library 35,000 Accum Depr Lib 10,000 Equipment 80,000 Accum Drp Equip 15,000 Accounts Payable 26,000 Ppd Rent Salaries payable Ref Debit Credit Unearned tn fees 12,500 Capital 90,000 Draw 50,000 Tuition fees earned 123,900 Training fees earned 40,000 Depr expense prof libi Equipment Depr expense equipm Ref Debit Credit Salary expense 50,000 Insruance expense Page 30 Accounts Receivable Ref Debit Credit Balance 1 Balance Accum Depr Equipment Ref Debit Credit Balance Balance Adjusted Trail Balance Adjusted DR TRIAL BALANCE Accounts TB CR 50,000 33,000 Salary expense Insruance expense Rent expense Teach supply expense Advertising expense Utilities expense Totals 6,000 6,400 Prof. Library Ref Debit Accum Depr Library Ref Debit Credit 317,400 317,400 Credit Balance Balance -------------------- 1 Journal the following adjusting Entries Salaries payable Ref Debit Credit Accounts Payable Ref Debit Balance Credit Balance a An analysis of the insurance policies show that $2400 of coverage has expired b end. c Annual Depreciation on the equipment is $13,200 d Annual Depreciation on the professional library is 7200 On Nov 1 Katy agreed to do a special 6 month course starting immediately for a student. The contract calls for a monthly fee of $2500 and the student paid the first 5 months fees in advance. When the cash was received, the Unearned Training Fees account was credited. e The fee for the 6th month will be recorded when it is collected next year. On October 15 Katy agreed to teach a 4 month class beginning immediately for a student for $3000 tution per month payable at the end of class. The class started on October 15 but no f payment as yet been received. Katy's accruals are applied to the nearest half month. i Uneanred Income Capital WTI's two employees are paid weekly. As of the end of the year, two days' salaries g have accrued at the rate of $100 per day for each employee. Ref Debit Credit Balance Ref Debit Credit Balance 12,500 12,500 90,000 90,000 h The balance in the Prepaid Rent account represents rent for December General Journal Debit "Pagescom Credit 5,000 Page 5 7,500 90,000 90,000 Totals . Katys Cooking School Income statement December 31 2017 Revenue Expenses Page 8 WTI's two employees are paid weekly. As of the end of the year, two days' salaries g have accrued at the rate of $100 per day for each employee. Ref Debit Credit Balance Ref Debit Credit Balance h The balance in the Prepaid Rent account represents rent for December. 12,500 90,000 90,000 12,500 7,500 Page debido General Journal Page 8 Debit Credit 5,000 90,000 90,000 90,000 Total Expenses Net Income Draw Tuition and Fees earned Ref Debit Credit Balance Ref Debit Credit Balance II Katys Cooking School Statement of Owners Equity December 31 2018 Utility Expense Training fees earned Ref Debit Credit Balance Statement of owner equity Beginning Equity Ref Debit Credit Balance Ending equity Depreciation exp - Equipmt Salary Expense Ref Debit Credit Balance Ref Debit Credit Balance Katys Cooking School Balance Sheet Docomhor 21 2014 Ref Debit Credit Balance Ref Debit Credit Balance Insurance expense Depr Expense Prof Library Ref Debit Credit Ref Debit Credit Balance Page 9 Balance Net equipment Total Assets Advertising Expense Ref Debit Credit Balance Liabilities Total Liabilities EQUITY Equity Total Liabilities and Equity