The following is Wolastoq Tours Inc.'s unadjusted trial balance at its year-end, November 30, 2025. The company adjusts its accounts annually.

Additional information:
1. The insurance policy has a 1-year term beginning April 1, 2025. At that time, a premium of \(\$ 7,320\) was paid.
2. The equipment was acquired on December 1,2022 . The equipment is depreciated at an annual rate of \(\$ 25,080\).
3. A physical count shows \(\$ 300\) of supplies on hand at November 30.
4. The note payable has a \(7 \%\) interest rate. Interest is paid on the first day of each following month and was last paid on November 1.
5. Deposits of \(\$ 1,400\) each were received for advance tour reservations from 10 school groups. At November 30, tours have been provided for all of these groups.
6. Employees are owed a total of \(\$ 500\) in salaries and wages at November 30.
7. A senior citizens' organization that had not made an advance deposit took a river tour for \(\$ 1,250\). This group was not billed until December for the services performed.
8. Additional advertising costs of \(\$ 260\) have been incurred, but the bills have not been received by November 30 .
9. On November 1 , the company paid \(\$ 2,400\) rent in advance for November and December.
10. Income taxes payable for the year are estimated to be an additional \(\$ 300\) beyond that recorded to date.

Instructions

a. Prepare the adjusting entries required at November 30 .

b. Set up T-accounts, enter the opening balances, and post the November adjusting entries to the general ledger.

c. Prepare an adjusted trial balance at November 30.

Transcribed Image Text:

Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Notes Payable (due 2028) Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Maintenance and Repairs Expense Rent Expense Interest Expense Advertising Expense Income Tax Expense Debit $ 15,800 7,640 965 2,400 7,320 153,840 69,560 11,170 13,200 3,465 825 1,700 $287,885 Credit $ 50,160 1,925 14,000 54,000 10,000 27,225 130,575 $287,885