The following is Cullumber Tours Inc.'s unadjusted trial balance at its year-end, November 30, 2025. The...

 
 

Transcribed Image Text:

The following is Cullumber Tours Inc.'s unadjusted trial balance at its year-end, November 30, 2025. The company adjusts its accounts annually. 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 Additional information: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Debit $16,675 7,890 1,340 2,650 7,572 154,090 69.810 11,420 13,450 3,715 1,075 1,950 $291,637 Credit $50,410 2,175 16,500 54,000 10,250 27,475 130,827 $291,637 The insurance policy has a 1-year term beginning April 1, 2025. At that time, a premium of $7,572 was paid. The equipment was acquired on December 1, 2022. The equipment is depreciated at an annual rate of $25,205. A physical count shows $550 of supplies on hand at November 30. 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. Deposits of $1,650 each were received for advance tour reservations from 10 school groups. At November 30, tours have been provided for all of these groups. Employees are owed a total of $750 in salaries and wages at November 30. A senior citizens' organization that had not made an advance deposit took a river tour for $1,500. This group was not billed until December for the services performed. Additional advertising costs of $510 have been incurred, but the bills have not been received by November 30. On November 1, the company paid $2,650 rent in advance for November and December. Income taxes payable for the year are estimated to be an additional $540 beyond that recorded to date. (a) Prepare the adjusting entries required at November 30. (List all debit entries before credit entries. If no entry is required, select "No Entry" for the account tities and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Insurance Expense Prepaid Insurance Accumulated Depreciation-Buildings Accumulated Depreciation Equipment eTextbook and Media Debit 5048 50410 Credit 5048 The following is Cullumber Tours Inc.'s unadjusted trial balance at its year-end, November 30, 2025. The company adjusts its accounts annually. 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 Additional information: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Debit $16,675 7,890 1,340 2,650 7,572 154,090 69.810 11,420 13,450 3,715 1,075 1,950 $291,637 Credit $50,410 2,175 16,500 54,000 10,250 27,475 130,827 $291,637 The insurance policy has a 1-year term beginning April 1, 2025. At that time, a premium of $7,572 was paid. The equipment was acquired on December 1, 2022. The equipment is depreciated at an annual rate of $25,205. A physical count shows $550 of supplies on hand at November 30. 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. Deposits of $1,650 each were received for advance tour reservations from 10 school groups. At November 30, tours have been provided for all of these groups. Employees are owed a total of $750 in salaries and wages at November 30. A senior citizens' organization that had not made an advance deposit took a river tour for $1,500. This group was not billed until December for the services performed. Additional advertising costs of $510 have been incurred, but the bills have not been received by November 30. On November 1, the company paid $2,650 rent in advance for November and December. Income taxes payable for the year are estimated to be an additional $540 beyond that recorded to date. (a) Prepare the adjusting entries required at November 30. (List all debit entries before credit entries. If no entry is required, select "No Entry" for the account tities and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Insurance Expense Prepaid Insurance Accumulated Depreciation-Buildings Accumulated Depreciation Equipment eTextbook and Media Debit 5048 50410 Credit 5048

Answer rating: 100% (QA)

The exercise requires us to prepare adjusting entries needed at the end of the period dated November2025 BalladaWin 2014 Basic Accounting Adjusting the accounts 19th edition Sampaloc Manila Significan... View the full answer