The trial balance before adjustment of Scenic Tours at the end of its first month of operations is presented here:

Other data:
1. The insurance policy has a 1-year term beginning June \(1,1998\).
2. The monthly depreciation is \(\$ 50\) on office equipment and \(\$ 2,000\) on buses.
3. Interest of \(\$ 700\) accrues on the notes payable each month.
4. Deposits of \(\$ 1,500\) each were received for advanced tour reservations from ten school groups. At June 30, three of these deposits have been earned.
5. Bus drivers are paid a combined total of \(\$ 400\) per day. At June 30, 3 days' salaries are unpaid.
6. A senior citizen's organization that had not made an advance deposit took a tour on June 30 for \(\$ 1,200\). This group was not billed for the services rendered until July.
\section*{Instructions}

(a) Journalize the adjusting entries at June 30, 1998.

(b) Prepare a ledger using \(\mathrm{T}\) accounts. Enter the trial balance amounts and post the adjusting entries.

(c) Prepare an adjusted trial balance at June 30, 1998.

Transcribed Image Text:

Cash SCENIC TOURS Trial Balance June 30, 1998 Debit Prepaid Insurance Office Equipment Buses Notes Payable Unearned Revenue Common Stock Tour Revenue Salaries Expense Advertising Expense Gas and Oil Expense Credit $ 3,000 7,200 1,800 140,000 $ 62,000 15,000 70,000 15,900 9,000 800 1,100 $162,900 $162,900