MC TRAVEL INC. Balance Sheet December 31, Note: The statements before any adjustments. 2020 2019 ASSETS-Current assets Cash Temporary investments Accounts receivable Allowance for doubtful accounts Total current assets 7,600,000 2,006,000 5,000,000 -200,000 14,406,000 5,040,000 1,900,000 3,700,000 -100,500 10,539,500 Capital assets Land Building and equipment Accumulated depreciation Total capital assets 250,000 55,270,000 -7,425,000 48,095,000 250,000 55,072,000 -4,950,000 50,372,000 Total assets 62,501,000 60,911,500 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable Interest payable Income taxes payable Dividends payable Total current liabilities 3,800,800 30,000 350,000 0 4,100,750 15,000 250,000 100,000 4,465,750 4,180,800 Long term liabilities Long term bank loan Bond payable Future income tax liability Total long-term liabilities 5% Miami property due 2019 1,145,000 40,000,000 175,000 41,320,000 807,000 40,000,000 150,000 40,957,000 Total liabilities 45,500,800 45,422,750 Shareholders' equity Common shares Retained earnings Total shareholders' equity 1,000,000 16,000,200 17,000,200 1,000,000 14,488,750 15,488,750 62,501,000 60,911,500 Total liabilities and shareholders' equity Difference: Assets - (Liabilities + Shareholders' equity) 0 0 MC TRAVEL INC. Income Statement for The Year Ended December 31, 2020, $ 37,500,000 Sales Expenses: Salaries and wages Purchases from tour operators Depreciation expense Office, general, and selling expenses Bad debt expenses Interest on long-term debt Bond interest expense Total expenses 5,000,000 22,500,000 2,500,000 3,489,800 150,000 30,000 2,000,000 35,669,800 Income before other income and expenses Investment income Gain on sale of equipment Income before income taxes Income tax expense Net income 1,830,200 256,000 73,000 2,159,200 647,750 1,511,450 Land adjusting entry. 1) Land Building $15,000,000 $15,000,000 Adjustment for prior year end's accumulated depreciation, income tax payable and retained earnings. 2) Accumulated depreciation $1,500,000 Income tax payable $450,000 Retained earnings $1,050,000 2019 Adjustments DR CR Restated 2019 2019 REF ASSETS-Current assets Cash Temporary investments Accounts receivable Allowance for doubtful accounts Total current assets 5,040,000 1,900,000 3,700,000 -100,500 10,539,500 5,040,000 1,900,000 3,700,000 -100,500 10,539,500 Capital assets Land Building and equipment Accumulated depreciation Total capital assets 15,000,000 250,000 1 15,000,000 55,072,000 1 -4,950,000 2 1,500,000 50,372,000 Total assets 60,911,500 4,100,750 15,000 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable Interest payable Income taxes payable Dividents payable Total current liabilities 4,100,750 15,000 250,000 2 100,000 4,465,750 450,000 100,000 Long term liabilities Long term bank loan Bond payable Future income tax liability Total long term liabilities 5% 807,000 Miami property due 2019 40,000,000 150,000 40,957,000 807,000 40,000,000 150,000 40,957,000 Total liabilities 45,422,750 1,000,000 Shareholders' equity Common shares Retained earnings Total shareholders' equity 1,000,000 14,488,750 2 15,488,750 1,050,000 Total liabilities and shareholders' equity 60,911,500 MC TRAVEL INC. Balance Sheet December 31, Note: The statements before any adjustments. 2020 2019 ASSETS-Current assets Cash Temporary investments Accounts receivable Allowance for doubtful accounts Total current assets 7,600,000 2,006,000 5,000,000 -200,000 14,406,000 5,040,000 1,900,000 3,700,000 -100,500 10,539,500 Capital assets Land Building and equipment Accumulated depreciation Total capital assets 250,000 55,270,000 -7,425,000 48,095,000 250,000 55,072,000 -4,950,000 50,372,000 Total assets 62,501,000 60,911,500 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable Interest payable Income taxes payable Dividends payable Total current liabilities 3,800,800 30,000 350,000 0 4,100,750 15,000 250,000 100,000 4,465,750 4,180,800 Long term liabilities Long term bank loan Bond payable Future income tax liability Total long-term liabilities 5% Miami property due 2019 1,145,000 40,000,000 175,000 41,320,000 807,000 40,000,000 150,000 40,957,000 Total liabilities 45,500,800 45,422,750 Shareholders' equity Common shares Retained earnings Total shareholders' equity 1,000,000 16,000,200 17,000,200 1,000,000 14,488,750 15,488,750 62,501,000 60,911,500 Total liabilities and shareholders' equity Difference: Assets - (Liabilities + Shareholders' equity) 0 0 MC TRAVEL INC. Income Statement for The Year Ended December 31, 2020, $ 37,500,000 Sales Expenses: Salaries and wages Purchases from tour operators Depreciation expense Office, general, and selling expenses Bad debt expenses Interest on long-term debt Bond interest expense Total expenses 5,000,000 22,500,000 2,500,000 3,489,800 150,000 30,000 2,000,000 35,669,800 Income before other income and expenses Investment income Gain on sale of equipment Income before income taxes Income tax expense Net income 1,830,200 256,000 73,000 2,159,200 647,750 1,511,450 Land adjusting entry. 1) Land Building $15,000,000 $15,000,000 Adjustment for prior year end's accumulated depreciation, income tax payable and retained earnings. 2) Accumulated depreciation $1,500,000 Income tax payable $450,000 Retained earnings $1,050,000 2019 Adjustments DR CR Restated 2019 2019 REF ASSETS-Current assets Cash Temporary investments Accounts receivable Allowance for doubtful accounts Total current assets 5,040,000 1,900,000 3,700,000 -100,500 10,539,500 5,040,000 1,900,000 3,700,000 -100,500 10,539,500 Capital assets Land Building and equipment Accumulated depreciation Total capital assets 15,000,000 250,000 1 15,000,000 55,072,000 1 -4,950,000 2 1,500,000 50,372,000 Total assets 60,911,500 4,100,750 15,000 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable Interest payable Income taxes payable Dividents payable Total current liabilities 4,100,750 15,000 250,000 2 100,000 4,465,750 450,000 100,000 Long term liabilities Long term bank loan Bond payable Future income tax liability Total long term liabilities 5% 807,000 Miami property due 2019 40,000,000 150,000 40,957,000 807,000 40,000,000 150,000 40,957,000 Total liabilities 45,422,750 1,000,000 Shareholders' equity Common shares Retained earnings Total shareholders' equity 1,000,000 14,488,750 2 15,488,750 1,050,000 Total liabilities and shareholders' equity 60,911,500