Red Travel and Tours

Worksheet
December 31, 2018

Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Titles
Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
Cash ₱ 465,000.00 ₱ 465,000.00 ₱ 465,000.00
Accounts Receivable 318,000.00 318,000.00 318,000.00
Office Supplies 27,000.00 ₱ 15,000.00 12,000.00 12,000.00
Prepaid Rent 180,000.00 60,000.00 120,000.00 120,000.00
Office Equipment 500,000.00 500,000.00 500,000.00
Accounts Payable ₱ 50,000.00 ₱ 50,000.00 ₱ 50,000.00
Loans Payable 200,000.00 200,000.00 200,000.00
Red, Drawings 25,000.00 25,000.00 25,000.00
Red, Capital 800,000.00 800,000.00 800,000.00
Service Income 647,000.00 647,000.00 ₱ 647,000.00
Salaries Expense 146,000.00 ₱ 4,800.00 150,800.00 ₱ 150,800.00
Advertising Expense 36,000.00 36,000.00 36,000.00
Totals ₱ 1,697,000.00 ₱ 1,697,000.00

Adjustments:

Bad Debts Expense 31,800.00 31,800.00 31,800.00

Allowance for Bad Debts 31,800.00 31,800.00 31,800.00
Office Supplies Expense 15,000.00 15,000.00 15,000.00
Rent Expense 60,000.00 60,000.00 60,000.00
Depreciation Expense 96,000.00 96,000.00 96,000.00
Accumulated Depreciation 96,000.00 96,000.00 96,000.00
Interest Expense 5,000.00 5,000.00 5,000.00
Accrued Interest Payable 5,000.00 5,000.00 5,000.00
Accrued Salaries Payable 4,800.00 4,800.00 4,800.00
₱ 212,600.00 ₱ 212,600.00 ₱ 1,834,600.00 ₱ 1,834,600.00 394,600.00 647,000.00 1,440,000.00 1,187,600.00
Net Income 252,400.00 252,400.00
₱ 647,000.00 ₱ 647,000.00 ₱ 1,440,000.00 ₱ 1,440,000.00
 Red Travel and Tours
Income Statement
For the Year Ended December 31, 2018

Advertising Income 647,000.00

Less: Operating Expense
Salaries Expense 150,800.00
Depreciation Expense 96,000.00
Rent Expense 60,000.00
Advertising Expense 36,000.00
Bad Debts Expense 31,800.00
Office Supplies Expense 15,000.00
Interest Expense 5,000.00 394,600.00
Net Income 252,400.00
 Red Travel and Tours
Capital Statement
As of December 31, 2018

Red, Capital- beg. 800,000.00

Add: Net Income - 2018 252,400.00
Total 1,052,400.00
Less: Withdrawals 25,000.00
Red, Capital - end 1,027,400.00
 Red Travel and Tours
Cash Flow Statement
For the Year Ended December 31, 2018

Net Income 252,400.00

Add: Deprecisation 96,000.00
Adjusted Net Income 348,400.00
Add/Less: Adjustments
Increase in Accounts Receivable 286,200.00
Increase in Office Supplies 12,000.00
Increase in Prepaid Rent 120,000.00
Increase in Accounts Payable 50,000.00
Increase in Accrued Salaries Payable 4,800.00
Increase in Accrued Interest Payable 5,000.00
Net Cash from Operating Activities 10,000.00

Cash from Investing Activities

Capital Investment 800,000.00
Acquisition of Fixed Assets 500,000.00
Withdrawal by the Owner 25,000.00
Net Cash from Investing Activities 275,000.00

Cash from Financing Activities

Proceeds from loan 200,000.00
Net Cash Flows 465,000.00
 Red Travel and Tours
Balance Sheet
As of December 31, 2018

Assets
Current Assets
Cash 465,000.00
Accounts Receivable, net 286,200.00
Office Supplies 12,000.00
Prepaid Rent 120,000.00 883,200.00
Non Current Assets
Office Equipment, net 404,000.00
Total Assets 1,287,200.00

Liabilities and Owner's Equity

Liabilitie
Accounts Payable 50,000.00
Loans Payable 200,000.00
Accrued Salaries Payable 4,800.00
Accrued Interest Payable 5,000.00 259,800.00
Owner's Equity
Red, Capital - end 1,027,400.00
Total Liabilities and Owner's Equity 1,287,200.00