Transaction Entries, Posting, Trial Balance, and Adjusting Entries Huang Karate School began business on June 1. Transactions for June are as follows:

1	Po Huang contributed his personal funds in exchange for
	common stock to begin the business.	$11,500
2	Purchased equipment for a total of	6,750
	Paid cash of $1,150, with the balance due in 30 days.
3	Paid 6 months' rent.	7,452
4	Paid one-year premium on liability insurance.	876
5	Paid June newspaper advertising.	625
6	Billed participants for karate lessons to date.	6,200
7	Received from a local company funds to conduct 3 sessions.	1,455
	The 3 sessions will be June 29, July 6, and July 13, with a cost per session of	485
8	Collected on account from participants.	5,800
9	Paid to repair damage caused by an errant kick.	675
10	Billed participants for karate lessons to date.	6,000
11	Paid assistants' wages.	650

Required Using the following accounts: Cash; Accounts Receivable; Prepaid Rent; Prepaid Insurance; Equipment; Accumulated Depreciation-Equipment; Accounts Payable; Utilities Payable; Unearned Karate Fees; Common Stock; Retained Earnings; Karate Fees Earned; Advertising Expense; Repairs Expense; Wages Expense; Rent Expense; Insurance Expense; Depreciation Expense-Equipment; and Utilities Expense.

a. Record the transactions in the general journal.

b. Post the transactions to the ledger accounts.

c. Prepare an unadjusted trial balance as of June 30.

d. Prepare and record the adjusting entries for rent expense, insurance expense, depreciation expense, utilities expense, and karate fees earned in the general journal. Depreciation expense for June is $90 and estimated utilities expense for June is $200. Post the adjusting entries to the ledger accounts in part b.

a.

Description	Debit	Credit
To record issuance of common stock.
Cash
To record purchase of equipment.
To record payment of 6 months rent.
Paid one-year premium on liability insurance.
Paid for June newspaper advertising.
To record billings for karate classes.
Received advance payment for participants.
Collection on account from participants
To record repair to damaged wall.
Billed participants for lessons given.

Paid assistants wages.

b.

Cash
(1)	Answer	Answer
(2)	Answer	Answer
(3)	Answer	Answer
(4)	Answer	Answer
(5)	Answer	Answer
(7)	Answer	Answer
(8)	Answer	Answer
(9)	Answer	Answer
(11)	Answer	Answer
Bal	Answer	Answer

Accounts Receivable
(6)	Answer	Answer
(8)	Answer	Answer
(10)	Answer	Answer
Bal	Answer	Answer

Unearned Karate Fees
(7)	Answer	Answer
unadj.Bal	Answer	Answer
(16)	Answer	Answer
Bal	Answer	Answer

Utilities Expense
(15)	Answer	Answer
Bal	Answer	Answer

Accounts Payable
(2)	Answer	Answer
Bal	Answer	Answer

Common Stock
(1)	Answer	Answer
Bal	Answer	Answer

Karate Fees Earned
(6)	Answer	Answer
(10)	Answer	Answer
unadj.Bal	Answer	Answer
(16)	Answer	Answer
Bal	Answer	Answer

Wage Expense
(11)	Answer	Answer
Bal	Answer	Answer

Repairs Expense
(9)	Answer	Answer
Bal	Answer	Answer

Utilities Payable
(15)	Answer	Answer
Bal	Answer	Answer

Accum. Depr.-Equipment
(14)	Answer	Answer
Bal	Answer	Answer

Depr. Exp.-Equipment
(14)	Answer	Answer
Bal	Answer	Answer

Advertising Expense
(5)	Answer	Answer
Bal	Answer	Answer

Prepaid Insurance
(4)	Answer	Answer
unadj.Bal	Answer	Answer
(13)	Answer	Answer
Bal	Answer	Answer

Insurance Expense
(13)	Answer	Answer
Bal	Answer	Answer

Equipment
(2)	Answer	Answer
Bal	Answer	Answer

Prepaid Rent
(3)	Answer	Answer
unadj.Bal	Answer	Answer
(12)	Answer	Answer
Bal	Answer	Answer

Rent Expense
(12)	Answer	Answer
Bal	Answer	Answer

c.

HUANG KARATE SCHOOL Unadjusted Trial Balance June 30
		Debit		Credit
Cash		$Answer		$Answer
Accounts Receivable		Answer		Answer
Prepaid Rent		Answer		Answer
Prepaid Insurance		Answer		Answer
Equipment		Answer		Answer
Accounts Payable		Answer		Answer
Unearned Karate Fees		Answer		Answer
Common Stock		Answer		Answer
Karate Fees Earned		Answer		Answer
Repairs Expense		Answer		Answer
Advertising Expense		Answer		Answer
Wages Expense		Answer		Answer
Totals		$Answer		$Answer

d.

Description	Debit	Credit
To record June rent expense.
To record June insurance expense.
To record June depreciation on equipment.
To record estimated June utilities expense.

To record portion of advance payment earned in June.