The following is Wolastoq Tours Limited's unadjusted trial balance at its year end, November 30, 2018. The company adjusts its accounts annually.

Additional information:
1. The insurance policy has a one-year term beginning April 1, 2018. At that time, a premium of $7,320 was paid.
2. The equipment was acquired on December 1, 2015, and has an estimated useful life of eight years. The vehicles were acquired on December 1, 2015, and have an estimated useful life of six years. The company uses straight-line depreciation.
3. A physical count shows $300 of supplies on hand at November 30.
4. The bank loan 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, all of these deposits have been earned.
6. Employees are owed a total of $500 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 tax payable for the year is estimated to be an additional $300 beyond that recorded to date.
Instructions
(a) Prepare the adjusting journal 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.
Record and post transaction and adjusting entries; prepare unadjusted and adjusted trial balances and financial statements.

Transcribed Image Text:

DebitCredit Cash Accounts receivable Supplies Prepaid rent Prepaid insurance Equipment Accumulated depreciation-equipment Vehicles Accumulated depreciation-vehicles Accounts payable Unearned revenue Bank loan payable, due 2021 Common shares Retained earnings Fees earned Salaries expense Repairs and maintenance expense Rent expense Interest expense Advertising expense Income tax expense $ 15,8oo 7,640 965 2,400 7,320 13.440 $ 3,360 140,40o 46,8oo 1,925 14,000 54,000 10.00O 27,225 130,575 69,560 11,170 13,200 3,465 825 $287.885 $287.885