Question
The following is Wolastoq Tours Inc.s unadjusted trial balance at its year-end, November 30, 2025. The company adjusts its accounts annually. Debit Credit Cash $15,800
The following is Wolastoq Tours Inc.s unadjusted trial balance at its year-end, November 30, 2025. The company adjusts its accounts annually. Debit Credit Cash $15,800 Accounts Receivable 7,640 Supplies 965 Prepaid Rent 2,400 Prepaid Insurance 7,320 Equipment 153,840 Accumulated Depreciation - Equipment $50,160 Accounts Payable 1,925 Unearned Service Revenue 14,000 Notes Payable (2028) 54,000 Common Stock 10,000 Retained Earnings 27,225 Service Revenue 130,575 Salaries and Wages Expense 69,560 Maintenance and Repairs Expense 11,170 Rent Expense 13,200 Interest Expense 3,465 Advertising Expense 825 Income Tax Expense 1,700 $287,885 $287,885 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 advanced tour reservations from 10 schools 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 and adjusted trial balance at November 30.
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