Transaction Entries, Posting, Trial Balance, and Adjusting Entries Zhou Karate School began business on June 1. Transactions for June are as follows: $10,000 $4,750 Po Zhou contributed his personal funds in exchange for common stock to begin the business. 2 Purchased equipment for a total of Paid cash of $950, with the balance due in 30 days. 3 Paid 6 months' rent. 4 Paid one-year premium on liability insurance. 5 Paid June newspaper advertising. 6 Billed participants for karate lessons to date. 7 Received funds from a local company to conduct a special, 3-session class. The 3 sessions will be June 29, July 6, and July 13, with a cost per session of 8 Collected on account from participants 9 Paid to repair damage caused by an errant kick. 10 Billed participants for karate lessons to date. 11 Paid assistants' wages. $6,450 $876 $715 $2,200 $885 $295 $3,000 $275 $2,000 $950 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; 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 $175 and estimated utilities expense for June is $320. Post the adjusting entries to the ledger accounts in part b. Journal Entries T-Accounts Unadjusted Trial Balance Adjusted Journal Entries General Journal Description Date Debit Credit Post ref. (12) To record June rent expense. To record June insurance expense. (14) To record June depreciation on equipment. (15) To record estimated June utilities expense. (16) To record portion of advance payment earned in June. Journal Entries T-Accounts Unadjusted Trial Balance Adjusted Journal Entries Credit ZHOU KARATE SCHOOL Unadjusted Trial Balance June 30 Debit Cash Accounts Receivable Prepaid Rent Prepaid Insurance Equipment Accounts Payable Unearned Karate Fees Common Stock Karate Fees Earned Advertising Expense Repairs Expense Wages Expense Totals Journal Entries T-Accounts Unadjusted Trial Balance Adjusted Journal Entries Cash Accounts Receivable Unearned Karate Fees Utilities Expense (6) (15) Bal (16) Bal (10) Bal (8) (9) (11) Bal Accounts Payable Common Stock Karate Fees Earned Wages Expense (1) (11) (2) Bal (6) (10) Bal Bal (16) Bal Repairs Expense Utilities Payable Accum. Depr.-Equipment Depr. Exp.-Equipment (15) (14) (9) Bal (14) Bal Bal Bal Advertising Expense Prepaid Insurance Insurance Expense Equipment (4) (5) Bal (13) Bal Bal (13) Bal Advertising Expense Prepaid Insurance Insurance Expense Equipment SISTENT (4) (13) Bal (2) Bal Bal (13) Bal Prepaid Rent Rent Expense (3) (12) (12) Bal Bal Journal Entries -Accounts Unadjusted Plal Balance Adjusted Journal Entries General Journal Description Date Debit Credit Post ref. (1) $ June Owned purchased shares for cash. (2) Cash Purchased equipment, $750 down, balance due in 30 days. (3) To record payment of 6 months rent. Paid one-year premium on liability insurance. Paid for June newspaper advertising. Billed participants for lessons given. Received advance payment for karate classes. (8) Collections on accounts from participants. (9) Repaired wall damage. (10) Billed participants for lessons given. (11) Paid assistant's wages
