Madelyn Rialubin Travel Agency

Worksheet
For the Year Ended December 31, 2013

Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Statement of Financial Position
No. Account Titles Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
110 Cash ₱ 126,000.00 ₱ 126,000.00 ₱ 126,000.00
120 Accounts Receivable ₱ 645,000.00 ₱ 645,000.00 ₱ 645,000.00
130 Prepaid Rent ₱ 360,000.00 a. ₱ 120,000.00 ₱ 240,000.00 ₱ 240,000.00
140 Office Supplies ₱ 63,000.00 b. ₱ 36,000.00 ₱ 27,000.00 ₱ 27,000.00
150 Furniture ₱ 2,175,000.00 ₱ 2,175,000.00 ₱ 2,175,000.00
155 Accumulated Depreciation ₱ 435,000.00 c. ₱ 75,000.00 ₱ 510,000.00 ₱ 510,000.00
210 Notes Payable ₱ 900,000.00 ₱ 900,000.00 ₱ 900,000.00
220 Accounts Payable ₱ 285,000.00 ₱ 285,000.00 ₱ 285,000.00
230 Salaries Payable d. ₱ 105,000.00 ₱ 105,000.00 ₱ 105,000.00
240 Interest Payable e. ₱ 54,000.00 ₱ 54,000.00 ₱ 54,000.00
310 Rialubin, Capital ₱ 1,680,000.00 ₱ 1,680,000.00 ₱ 1,680,000.00
320 Rialubin, Withdrawals ₱ 1,200,000.00 ₱ 1,200,000.00 ₱ 1,200,000.00
410 Travel Revenues ₱ 5,133,000.00 ₱ 5,133,000.00 ₱ 5,133,000.00
510 Salaries Expense ₱ 3,771,000.00 d. ₱ 105,000.00 ₱ 3,876,000.00 ₱ 3,876,000.00
520 Rent Expense a. ₱ 120,000.00 ₱ 120,000.00 ₱ 120,000.00
530 Office Supplies Expense b. ₱ 36,000.00 ₱ 36,000.00 ₱ 36,000.00
540 Depreciation Expense c. ₱ 75,000.00 ₱ 75,000.00 ₱ 75,000.00
550 Interest Expense e. ₱ 54,000.00 ₱ 54,000.00 ₱ 54,000.00
560 Miscellaneous Expense ₱ 93,000.00 ₱ 93,000.00 ₱ 93,000.00
₱ 8,433,000.00 ₱ 8,433,000.00 ₱ 390,000.00 ₱390,000.00 ₱ 8,667,000.00 ₱ 8,667,000.00 ₱ 4,254,000.00 ₱ 5,133,000.00
Profit ₱ 879,000.00 ₱ 879,000.00
₱ 5,133,000.00 ₱ 5,133,000.00 ₱ 4,413,000.00 ₱ 4,413,000.00
Adjusting Entries:

Date Particulars P.R. Debit Credit Type of Adjustment

12/31/2013 a. Rent Expense 520 ₱ 120,000.00 Prepaid expense: Asset Method

Prepaid Rent 130 ₱ 120,000.00 Rialubin used Asset Method because she recorded prepaid rent (asset) at the initial entry
To record rent expense for Nov-Dec 2013 Therefore, you need to adjust the asset and establish the expense

b. Office Supplies Expense 530 ₱ 36,000.00 Prepaid expense: Asset Method

Office Supplies 140 ₱ 36,000.00 Rialubin used Asset Method because she recorded Office Supplies (asset) at the initial entry
To record supplies expense for December 2013 Therefore, you need to adjust the asset and establish the expense

c. Depreciation Expense 540 ₱ 75,000.00 Depreciation

Accumulated Depreciation 155 ₱ 75,000.00
To record depreciation for the year 2013

d. Salaries Expense 510 ₱ 105,000.00 Accrued Expenses

Salaries Payable 230 ₱ 105,000.00
To record accrual of salaries

e. Interest Expense 550 ₱ 54,000.00 Accrued Expense

Interest Payable 240 ₱ 54,000.00 To compute: 900,000*24% = 216,000/ 12 months = 18,000 per month
To record accrual of interest of the Note October1- December 31 x 3mos
54,000.00
Ledgers

Cash 110 Accounts Receivable 120 Prepaid Rent 130 Office Supplies 140
Date Date Date Date Date Date Date Date
12/31/2013 ₱ 126,000.00 12/31/2013 ₱ 645,000.00 12/31/2013 ₱ 360,000.00 12/31/2013 ₱ 63,000.00
12/31/13 12/31/2013
₱ 120,000.00 adj.a ₱ 36,000.00 adj b.
₱ 360,000.00 ₱ 120,000.00 ₱ 63,000.00 ₱ 36,000.00
₱ 240,000.00 ₱ 27,000.00

Furniture 150 Accumulated Depreciation 155 Notes Payable 210 Accounts Payable 220
Date Date Date Date Date Date Date Date
12/31/2013 ₱ 2,175,000.00 ₱ 435,000.00 12/31/2013 ₱ 900,000.00 12/31/2013 ₱ 285,000.00 12/31/2013
12/31/2013
₱ 75,000.00 adj. c
₱ 510,000.00

Salaries Payable 230 Interest Payable 240 Rialubin,Capital 310 Rialubin, Withdrawals 320
Date Date Date Date Date Date Date Date
₱ 1,680,000.00 12/31/2013 12/31/2013 ₱ 1,200,000.00
12/31/2013 12/31/2013
₱ 105,000.00 adj.d ₱ 54,000.00 adj. e
Travel Revenues 410 Salaries Expense 510 Rent Expense 520 Office Supplies Expense 530
Date Date Date Date Date Date Date Date
₱ 5,133,000.00 12/31/2013 12/31/2013 ₱ 3,771,000.00 12/31/2013 12/31/2013
12/31/2013 12/31/2013 12/31/2013
adj. d ₱ 105,000.00 adj. a ₱ 120,000.00 adj. b ₱ 36,000.00

₱ 3,876,000.00 ₱ -
₱ 3,876,000.00

Depreciation Expense 540 Interest Expense 550 Miscellaneous Expense 560

Date Date Date Date Date Date
12/31/2013 12/31/2013 12/31/2013 ₱ 93,000.00
12/31/2013 12/31/2013
adj. c ₱ 75,000.00 adj. e ₱ 54,000.00
Financial Statements

Madelyn Rialubin Travel Agency Madelyn Rialubin Travel Agency

Statement of Financial Performance Statement of Financial Position
For the Year Ended December 31, 2013 As of December 31, 2013

REVENUE: ASSETS
Travel Revenues ₱ 5,133,000.00
Total ₱ 5,133,000.00 Current Assets
Cash ₱ 126,000.00
EXPENSES: Accounts Receivable ₱ 645,000.00
Salaries Expense ₱ 3,876,000.00 Prepaid Rent ₱ 240,000.00
Rent Expense ₱ 120,000.00 Office Supplies ₱ 27,000.00
Office Supplies Expense ₱ 36,000.00 Total Current Assets ₱ 1,038,000.00
Depreciation Expense ₱ 75,000.00
Interest Expense ₱ 54,000.00 Non-Current Asset
Miscellaneous Expense ₱ 93,000.00 Furniture ₱ 2,175,000.00
Total ₱ 4,254,000.00 Accumulated Depreciation ₱ (510,000.00) ₱ 1,665,000.00

PROFIT ₱ 879,000.00 Total Assets ₱ 2,703,000.00

LIABILITIES
Madelyn Rialubin Travel Agency
Statement of Changes in Owner's Equity Current Liabilities
For the Year Ended December 31, 2013 Notes Payable ₱ 900,000.00
Accounts Payable ₱ 285,000.00
Salaries Payable ₱ 105,000.00
Rialubin, Capital - Beginning ₱ 1,680,000.00 Interest Payable ₱ 54,000.00
Add:
Additional Investments ₱ - Total Liabilities ₱ 1,344,000.00
Profit ₱ 879,000.00 ₱ 879,000.00
Total ₱ 2,559,000.00 OWNER'S EQUITY
Less: Rialubin, Capital - End ₱ 1,359,000.00
Withdrawals ₱ 1,200,000.00
Loss ₱ - ₱ 1,200,000.00 Total Liabilities and Owner's Equity ₱ 2,703,000.00
Rialubin, Capital - End ₱ 1,359,000.00