Adjusting Entries

Date Accounts Dr Cr
December 31, 2021 Rent Expense 120,000
Prepaid Rent 120,000

December 31, 2021 Supplies Expense 36,000

Supplies 36,000

December 31, 2021 Furniture Depreciation Expense 75,000

Furniture Accumulated Depreciation 75,000

December 31, 2021 Salaries Expense 105,000

Salaries Payable 105,000

December 31, 2021 Interest Expense 54,000

Interest Payable 54,000
390,000 390,000
 Assets Liabilities and Owner's Equity

Cash Accounts Payable

126,000 285,000
126,000 285,000

Furniture Notes Payable

2,175,000 900,000
2,175,000 900,000

Accounts Receivable Salaries Payable

645,000 105,000
645,000 105,000

O ce Supplies Acummulated Depreciation

63,000 36,000 435,000
27,000 75,000
510,000

Prepaid Rent Interest Payable

360,000 120,000 54,000
240,000 54,000

Rialubin Capital
1,680,000
1,680,000

Rialubin Withdrawals
1,200,000
1,200,000

Travel Revenues
5,133,000
5,133,000
 Madelyn Rialubin Travel Agency
For the year ended December 31, 2021

Unajusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance sheet
No Account Title Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
110 Cash 126,000.00 126,000 126,000
120 Accounts Receivable 645,000.00 645,000 645,000
130 Prepaid Rent 360,000.00 a 120,000.00 240,000 240,000
140 O ce Supplies 63,000.00 b 36,000.00 27,000 27,000
150 Furniture 2,175,000.00 2,175,000 2,175,000
155 Accumulated Depreciation 435,000.00 c 75,000.00 510,000 510,000
210 Notes Payable 900,000.00 900,000 900,000
220 Accounts Payable 285,000.00 285,000 285,000
230 Salaries Payable d 105,000.00 105,000 105,000
240 Interest Payable e 54,000.00 54,000 54,000
310 Riabulin, Capital 1,680,000.00 1,680,000 1,680,000
320 Riabulin, Withdrawals 1,200,000.00 1,200,000 1,200,000
410 Travel Revenues 5,133,000.00 5,133,000 5,133,000
510 Salaries Expense 3,771,000.00 d 105,000.00 3,876,000 3,876,000
520 Rent Expense a 120,000.00 120,000 120,000
530 O ce Supplies Expense b 36,000.00 36,000 36,000
540 Depreciation Expense c 75,000.00 75,000 75,000
550 Interest Expense e 54,000.00 54,000 54,000
560 Miscellaneous Expense 93,000.00 93,000 93,000
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 4,413,000.00 3,534,000.00
Profit 879,000.00 879,000.00
5,133,000.00 5,133,000.00 4,413,000.00 4,413,000.00
 Madelyn Rialubin Travel Agency
Income Statement
For the year ended December 31, 2021

Revenues
Travel Revenues 5,133,000
Total Revenue 5,133,000

Expenses
Salaries Expense 3,876,000
Rent Expense 120,000
O ce Supplies Expense 36,000
Depreciation Expense 75,000
Interest Expense 54,000
Miscellaneous Expense 93,000
Total Expenses 4,254,000

Pro t 879,000
 Madelyn Rialubin Travel Agency
Statement of Changes in Equity
For the year ended December 31, 2021

Rialubin, Capital 1,680,000.00

Pro t 879,000.00 879,000.00
Total 2,559,000.00
Less: Withdrawal 1,200,000.00
Rialubin, Owner's Equity Dec 31, 2021 1,359,000.00
 Madelyn Rialubin Travel Agency
Balance Sheet
December 31, 2021

Assets
Current Assets

Cash 126,000
Accounts Receivable 645,000
Prepaid Rent 240,000
O ce Supplies 27,000
Total Current Assets 1,038,000

Property and Equipment

Furniture 2,175,000
Less: Accumulated Depreciation 510,000
Total Non-Current Assets 1,665,000

Total Assets 2,703,000

Liabilities
Current Liabilities
Notes Payable 900,000
Accounts Payable 285,000
Salaries Payable 105,000
Interest Payable 54,000
Total Current Liabilities 1,344,000

Owner’s Equity
Rialubin, Capital Dec 31, 2021 1,359,000

Total Liabilities & Owner's Equity 2,703,000