Question

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

Answer 1

General Journal
Date	Description	Post Ref.	Dr. ($)	Cr. ($)
June	Cash	1	10000
	To Common stock			10000
	(to record contribution)
	Equipment	2	4750
	To Cash			950
	To Accounts payable			3800
	(to record purchase of equipment)
	Prepaid rent	3	6450
	To Cash			6450
	(to record rent paid in advance)
	Prepaid insurance	4	876
	To Cash			876
	(to record premium paid for one year)
	Advertising expenses	5	715
	To Cash			715
	(to record payment for advertisement)
	Accounts receivable	6	2200
	To Karare fees earned			2200
	(to record customers billed for service)
	Cash	7	885
	To Unearned Karate fees			885
	(to record cash received for sessions)
	Cash	8	3000
	To Accounts receivable			3000
	(to record cash collected)
	Repair expenses	9	275
	To Cash			275
	(to record repair expenses)
	Accounts receivable	10	2000
	To Karare fees earned			2000
	(to record participants billed)
	Wages expenses	11	950
	To Cash			950
	(to record wages expenses)

cash
1	10000
2		950
3		6450
4		876
5		715
7	885
8	3000
9		275
11		950
balance	3669

accounts receivable
6	2200
8		3000
10	2000
balance	1200

equipment
2	950
2	3800
balance	4750

prepaid rent		prepaid insurance		accumulated depreciation
3	6450			4	876			14		175
12		1075		13		73
balance	5375			balance	803			balance		175
rent expense		insurance expenses		depreciation expensese
12	1075			13	73			14	175
balance	1075			balance	73			balance	175

Karate fees earned		Unearned karate fees
6		2200		7		885
10		2000		16	295
16		295
balance		4495		balance	590

advertising expenses		repair expenses		wages expenses
5	715	0		9	275	0		11	950	0
balance	715	0		balance	275	0		balance	950	0

accounts payable		common stock
2	0	3800		1	0	10000
balance	0	3800		balance	0	10000
utilities expenses		utilities payable
15	320	0		15	0	320
balance	320	0		balance	0	320

Zhou Karate School
Unadjusted Trial Balance
As of June 30	Dr.($)	Cr.($)
cash	3669
accounts receivable	1200
Equipment	4750
prepaid rent	6450
prepaid insurance	876
karate fees earned		4200
unearned karate fees		885
advertising expenses	715
repair expenses	275
wages expenses	950
accounts payable		3800
common stock		10000
total	18885	18885

Date	Adjusted journal entries	Post Ref.	Dr.($)	Cr.($)
	Rent expenses	12	1075
	To Prepaid rent			1075
	(to record June rent expense $6450/6)
	Insurance expenses	13	73
	To Prepaid insurance			73
	(to record June insurance expense $876/12)
	Depreciation expenses	14	175
	To Accumulated depreciation			175
	(to record June depreciation expense)
	Utilities expenses	15	320
	To Utilities payable			320
	(to record June utilities expense)
	Unearned Karate fees	16	295
	To Karate fees earned			295
	(to record advance payment receive for June)