BigWaveDave Surf School provides surfing lessons to individuals in Tofino, BC and also offers "Certified Surfing Instructor Training to groups and individuals in other off-site locations. The business follows the practice of initially recording Prepaid Expenses and Uneamed Revenues in balance sheet accounts (eg. prepaid asset or uneamed liability). Following is the adjusted trial balance. Big WaveDave only does accounting once per year at year end. CREDIT $ 13,160 BigWave Dave Surf School (a proprietorship) Unadjusted Trial Balance December 31, 2018 ACCOUNT DEBIT Cash $ 3,100 Accounts receivable 4,800 Surfing supplies 2.900 Prepaid advertising 1,950 Prepaid insurance 5,600 Surf equipment (Sea doos.) 21,300 Accumulated amortization - Surf equipment Vehicles (GM Pick-up truck) 49,000 Accumulated amortization - Truck Accounts payable Salaries payable Unearned fees Dave Slater, capital Fee revenue Advertising expense 5,985 Amortization expense - Surf equipment 0 0 Amortization expense - Truck Insurance expense 200 Surfing supplies expense 2,000 Salary expense 13.653 Total $110.488 27,450 6,775 1,500 5,200 20,353 36,050 $110.488 Additional information related to fiscal year 2018 but not made available until January 5, 2019, a few days after the above unadjusted trial balance was prepared, is as follows: Bus 143 Midter Page 6 of 15 a) Analysis of the company's policies shows $5,400 of insurance coverage expired b) A physical count shows surfing supplies of $777 remaining at the end of the year. c) The estimated annual amortization on the Sea-doos (surf equipment) is $4,500 and on the pick-up truck (vehicle) is $7,000. d) Starting October 15th 2018 the school agreed to teach a three month class that runs to January 151h, 2019 to an individual for a $1,200 per month feel payable at the end of the classes. The service has been provided to date as agreed, but no payment has yet been received e) $1,000 of the balance in the prepaid advertising account represents advertising costs incurred in the month of December 2018 f) On November 1, BigWaveDave agreed to do a four month off-site certified surfing instructor training course for a client starting December 1 The contract called for a $2,600 per month fee, and the client paid the first two months in advance on November 15th When the $5,200 cash was received the unearned fees account was credited. The course ran as scheduled for the month of December 2018 Required: In the space below OR on the attached answer booklet, prepare the necessary adjusting journal entries for Big WaveDave as at December 31, 2018