Madelyn Rialubin Travel Agency

Worksheet is a scratch paper only. It is optional too.

December 31, 2018

Account Titles Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Cash 126,000 126,000 126,000

Accounts Receivable 645,000 645,000 645,000
Prepaid Rent 360,000 120,000 240,000 240,000
Office Supplies 63,000 36,000 27,000 27,000
Furniture 2,175,000 2,175,000 2,175,000
Accumulated Depreciation 435,000 75,000 510,000 510,000
Notes Payable 900,000 900,000 900,000
Accounts Payable 285,000 285,000 285,000
Salaries Payable 105,000 105,000 105,000
Interest Payable 54,000 54,000 54,000
Rialubin, Capital 1,680,000 1,680,000 1,680,000
Rialubin, Withdrawals 1,200,000 1,200,000 1,200,000
Travel Revenues 5,133,000 5,133,000 5,133,000
Salaries Expense 3,771,000 105,000 3,876,000 3,876,000
Rent Expense 120,000 120,000 120,000
Office Supplies Expense 36,000 36,000 36,000
Depreciation Expense 75,000 75,000 75,000
Interest Expense 54,000 54,000 54,000
Miscellaneous Expense 93,000 93,000 93,000
Total 8,433,000 8,433,000 390,000 390,000 8,667,000 8,667,000 4,254,000 5,133,000 4,413,000 3,534,000
PROFIT 879,000 879,000
Total 5,133,000 5,133,000 4,413,000 4,413,000

ADJUSTING ENTRIES: Reversing Entries- usually journalized at the first date of the accounting year. January 01.
DEC. 31 a. Rent Expense 120,000 N/A
Prepaid Rent 120,000 Rules:
1. Only expense and income methods are allowed to be reversed.
DEC. 31 b. Office Supplies Expense 36,000 N/A 2. No depreciation, asset and liability method.
Office Supplies 36,000 3. All accruals are allowed to be reversed.

DEC. 31 c. Depreciation Expense- Furniture75,000 N/A

Accumulated Depreciation-Furniture 75,000

DEC. 31 d. Salaries Expense 105,000 Salaries Payable 105,000

Salaries Payable 105,000 Salaries Expense 105,000

DEC. 31 e. Interest Expense 54,000 Interest Payable 54,000

Interest Payable 54,000 Interest Expense 54,000
 Madelyn Rialubin Travel Agency
Income Statement/Statement of Comprehensive Income/Finacial Performance
For the year ended December 31, 2018

Revenues
Travel Revenues ₱ 5,133,000 single underlining is used to deter
Less: Expenses pesos only first debit and first cred
Salaries Expense ₱ 3,876,000 please refer to financial position.
revenues, expenses and Rent Expense 120,000
profits are nominal or Office Supplies Expense 36,000
temporary accounts. They Depreciation Expense 75,000
are subjected to be closed Interest Expense 54,000
Miscellaneous Expense 93,000 4,254,000
Net Profit ₱ 879,000 double underlining or double rule
derlining is used to determine the subtotal.
y first debit and first credit in each columns plus the subtotal and end result.
er to financial position.

nderlining or double rule is used to determine the end result.

 Madelyn Rialubin Travel Agency
Statement of Changes in Owner's Equity to update the capital balance of the o
For the year ended December 31, 2018

Rialubin, Capital- Beg. ₱ 1,680,000

Add: Net Profit 879,000
Total 2,559,000
Less: Rialubin, Withdrawals 1,200,000
Rialubin, Capital- End ₱ 1,359,000
the capital balance of the owner.
 Madelyn Rialubin Travel Agency
Statement of Financial Position/Balance Sheet
As of December 31, 2018

ASSETS

Current Assets realizable in 1 year or less. Other examples

Cash ₱ 126,000 inventories,
Accounts Receivable 645,000
Prepaid Rent 240,000
Office Supplies 27,000
Total Current Assets ₱ 1,038,000
assets and liabilties are real Non-Current Assets realizable but more than 1 year. Other exa
accounts. They are subjected Furniture 2,175,000 , computers, delivery vehicles, furniture
to disclosure. Less: Accumulated Depreciation 510,000
Total Non-Current Assets ₱ 1,665,000
TOTAL ASSETS ₱ 2,703,000

LIABILITIES AND OWNER'S EQUITY

Liabilities
Current Liabilities realizable in 1 year or less. Exam
Notes Payable ₱ 900,000 should be balanced.
Accounts Payable 285,000
Salaries Payable 105,000
Interest Payable 54,000
Total Liabilities ₱ 1,344,000

Owner's Equity
Rialubin, Capital 1,359,000 capital is a personal account.
TOTAL LIABILITIES AND OWNER'S EQUITY ₱ 2,703,000
in 1 year or less. Other examples: cash equivalents,

but more than 1 year. Other examples: land, equipments

rs, delivery vehicles, furniture

realizable in 1 year or less. Examples are short-term loans, mortgages

should be balanced.

capital is a personal account.

Closing Entries: is journalized at the general journal. It increases/decreases capital balance through the use of t-account. Jo
inversed entry. Only nominal accounts.
1. To close revenue account.

Travel Revenues ₱ 5,133,000

Income Summary ₱ 5,133,000

2. To close expense accounts.

Income Summary 4,254,000

Salaries Expense 3,876,000
Rent Expense 120,000
Office Supplies Expense 36,000
Depreciation Expense 75,000
Interest Expense 54,000
Miscellaneous Expense 93,000

3. To close the income summary account.

Income Summary 879,000 net income

Rialubin, Capital 879,000

4. To close withdrawals.

Rialubin, Capital 1,200,000

Rialubin, Withdrawals 1,200,000
ough the use of t-account. Journalized at the end of accounting period.
 Madelyn Rialubin Travel Agency
Post Closing Trial Balance
December 31, 2018

Cash ₱ 126,000
Accounts Receivable 645,000
Prepaid Rent 240,000
Office Supplies 27,000
Furniture 2,175,000
Accumulated Depreciation ₱
510,000
Notes Payable 900,000
Accounts Payable 285,000
Salaries Payable 105,000
Interest Payable 54,000
Rialubin, Capital-End 1,359,000
Total ₱ 3,213,000 ₱ 3,213,000
Reversing Entries is also optional.

d. Salaries Payable ₱ 105,000

Salaries Expense ₱ 105,000

e. Interest Payable 54,000

Interest Expense 54,000