CHAPTER 21 MULTIPLE CHOICE 21-1
b
21.2
a
21.3
a
21.4
b
21.5
b
21.6
a
21.7
c
21.8
a
21.9
a
21.10
c
21.11
d
21.12
b
21.13
b
21.14
a
21.15
a
Excess of income over expenses Depreciation Incr Increa ease se in due due from from nati nation onal al gove govern rnme ment nt agen agenci cies es Increase in prepaid rent Increase in accounts payable Cash provided by operating activities
P 200 70 ( 10) 10) ( 15) 30 P 275
142
PROBLEMS Problem 21-1
1.
Memo entry in the RAOPS, RAOMO, RAOCO and RAOFE.
2.
Cash – National Treasury – MDS Subsidy Income from National Government
2,000,000 2,000,000
3.
Memo entry in the RAOPS, RAOMO, RAOCO and RAOFE.
4.
Office equipment Accounts payable
50,000
Cash – Disbursing Officer Cash – National Treasury – MDS
40,000
Salaries and wages – Regular Personal economic relief allowance (PERA) Additional compensation Due to BIR Due to GSIS Due to Pag-ibig Due to Philhealth Cash – Disbursing Officer
44,000 3,000 3,000
Due to GSIS Due to Pag-ibig Due to Philhealth Cash – National Treasury – MDS
5,500 400 600
5.
6.
7.
8.
9.
10.
11.
12.
50,000
40,000
3,500 5,500 400 600 40,000
6,500
Life and retirement contribution Pag-ibig contribution Philhealth contribution Cash – National Treasury – MDS
5,500 400 600
Electricity Telephone expense – Landline Accounts payable Due to BIR Cash – National Treasury – MDS
5,000 4,000 50,000
Due to BIR Subsidy income from national government
6,500
5,000 54,000 4,500 4,500
Cash – Collecting Officer Sales revenue Permit fees Miscellaneous income
90,000
Cash in Bank – Local currency – Current account Cash – Collecting Officer
90,000
40,000 30,000 20,000
90,000
143
Problem 21-2 Building
1.
Memo entry in RAOCO.
2.
Advances to contractor Cash – National Treasury – MDS
240
Construction in progress – Other Public Infrastructure Advances to contractor Accounts payable
400
Accounts payable Due to BIR Cash – National Treasury – MDS
160
Construction in progress – Other Public Infrastructure Accounts payable
400
Accounts payable Due to BIR Cash – National Treasury
400
3.
4.
5.
6.
7.
8.
Due to BIR Subsidy income from national government Office Building Construction in progress – OPI
240
240 160
40 120
400
40 360 80 80 800 800
Repairs of Building
1.
Memo entry in RAOCO.
2.
Construction materials inventory Accounts payable
70
Accounts payable Due to BIR Cash – National Treasury – MDS
70
Construction in progress – Other Public Infrastructure Construction materials inventory
60
3.
4.
5.
70
7 63
60
Memo entry in the RAOCO
144
6.
7.
8.
9.
Cash – Disbursing Officer Cash – National Treasury – MDS
36
Construction in progress – Other Public Infrastructure Due to BIR Cash – Disbursing Officer
40
Due to BIR Cash – National Treasury – MDS
47
Office building Construction in progress – OPI
36
4 36
47 100 100
Land:
1.
Memo entry in the RAOCO, P100.
2.
Land
100 Accounts payable
3.
Accounts payable Due to BIR Cash – National Treasury – MDS
100 100 10 90
145
Problem 21-3 (a)
Journal Entries:
1.
Memo entry in the Registry of Obligations and Allotments.
2.
Cash – National Treasury – MDS Subsidy income from national government
2,500 2,500
3.
Memo entry in Registry of Obligations and Allotments.
4.
Office equipment Accounts payable
120
IT equipment and software Accounts payable
30
Prepaid rent Cash – National Treasury – MDS
60
Electricity expense Cash – National Treasury – MDS
50
Telephone expense – Landline Cash – National Treasury – MDS
40
Petty cash fund Cash – National Treasury – MDS
45
Accounts payable Due to BIR Cash – National Treasury – MDS
120
Accounts payable Cash – National Treasury – MDS
30
Due to BIR Subsidy income from national government
12
Cash – Collecting Officer Other service income Sales revenue
50
Cash in bank – LCCA Cash – Collecting Officer
50
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
120
30
60
50
40
45
12 108
30
12
10 40
50
146
(b)
Pre-closing Trial Balance
Petty cash fund Cash – National Treasury – MDS Cash in Bank – Local Currency – Current Account Prepaid rent Office equipment IT equipment and software Other service income Sales revenue Subsidy income from national government Electricity expense Telephone expense – landline Total
45 2,167 50 60 120 30 10 40 2,512 50 40 2,562
2,562
© Adjusting Entries (1)
(2)
Depreciation – Office equipment & software Depreciation – IT equipment Accumulated depreciation – Office equipment Accumulated depreciation – IT equip & software
20 5
Rent expense Prepaid rent
30
20 5
30
Closing Entries: (1)
Unused National Clearing Account (NCA) Subsidy income from national government Cash – National Treasury – MDS NCA received during the year Less: MDS check issued Unused NCA
(2)
(3)
(4)
(5)
Income accounts: Other service income Sales revenue Subsidy income from national government Income and expense summary Expense accounts: Income and expense summary Electricity expense Telephone expense – landline
2,167 2,167 2,500 333 2,167
10 40 345 395
90 50 40
Income and expense summary Retained operating surplus
305
Retained operating surplus
305
Government equity
305
305
147
Problem 21-4 Agency VV Statement of Income and Expenses Year Ended December 31, 2008
Income: Subsidy income from national government Less: Reversion of unused NCA
P1,700 800
Less: Expenses Salaries and wages – Regular Personnel Economic Relief Allowance Additional compensation Life and retirement insurance contribution Pag-ibig contribution Philhealth contgribution Traveling expense – Local Office supplies expense Electricity expense Telephone expense – landline Janitorial services Security services Repairs and maintenance – Office building Depreciation – Office building Depreciation – office equipment Depreciation – furniture and fixtures Depreciation – IT equipment and software Net income over expenses
P 320 40 40 60 10 10 35 60 75 45 30 35 65 15 10 5 5
P900
860 P 40
148
Agency VV Balance Sheet As of December 31, 2008 ASSETS Current Assets Cash: Cash in vault Cash – collecting officer Cash – disbursing officer Petty cash fund Cash in bank – LCCA Receivables: Accounts receivable Less: Allowance for doubtful accounts Inventories: Office supplies inventory Other current assets Long-term investment: Investment in stock Property, Plant and Equipment : Land Office building Less: accumulated depreciation Office equipment Less: accumulated depreciation Furniture and fixtures Less: accumulated depreciation IT equipment and software Less: accumulated depreciation Total assets LIABILITIES AND EQUITY Liabilities Current liabilities Accounts payable Due to BIR Due to GSIS Due to Pag-ibig Due to Philhealth Other payables Equity: Government equity Total liabilities and equity
P 200 500 1,000 150 350
P2,200
P 120 20
100 30 15 400
600 650 50 250 20 110 10 190 25
600 230 100 165
185 50 30 25 25 15
1,695 4,440
330 4,110 4,440
149
150
