Assignment on Financial Satement Preparation PDF

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Ginalyn Dumabok3/12/BSA-3 MW 1:30 –3:Assignment on Financial StatementPreparationPROBLEM - FINANCIAL STATEMENT PRESENTATIONThe comparative pre-closing adjusted trial balances of Entity A on December 31, 2022 are shown below:Accounts 2021 2022 Dr (Cr) Dr (Cr) NOTECash-Collecting Officers 30, 30,Cash-...

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Ginalyn Dumabok 3/12/21 BSA-3 3:00

MW 1:30 –

Assignment on Financial Statement Preparation PROBLEM - FINANCIAL STATEMENT PRESENTATION The comparative pre-closing adjusted trial balances of Entity A on December 31, 2022 are shown below: Accounts

2021

2022

Dr (Cr)

Dr (Cr)

NOTE

Cash-Collecting Officers

30,000

30,000

Cash-Treasury/Agency Deposit, Regular

290,000

250,000

Accounts Receivable

80,000

120,000

1

Allowance for Impairment-A/R

-

(5,000)

1

Office Supplies Inventory

-

20,000

Buildings

800,000

800,000

2

Accumulated Depreciation-Buildings

(650,00 0)

(680,000)

2

Office Equipment

340,000

660,000

2

Accumulated Depreciation-Equipment

(180,00 0)

(180,000)

2

Accounts Payable

(60,000)

(90,000)

Due to BIR

(20,000)

-

Due to GSIS

(4,000)

-

Due to Pag-IBIG

(2,000)

-

Due to Philhealth

(1,000)

-

Accumulated Surplus(Deficit)

(160,00 0)

(333,000)

Tax on Delivery Vans and Trucks

(40,000)

(50,000)

Waterworks System Fees

(192,00 0)

(240,000)

Subsidy from National Government

(934,00 0)

(1,167,00 0)

Salaries and Wages, Regular

303,000

380,000

4

PERA

16,000

20,000

4

Office Supplies Expense

104,000

130,000

5

Water Expenses

16,000

20,000

5

Electricity Expenses

48,000

60,000

5

Telephone Expenses

32,000

40,000

5

Janitorial Expenses

64,000

80,000

5

Security Expenses Depreciation-Buildings & Other Structures

80,000

100,000

5

24,000

30,000

6

Depreciation- Machinery & Equipment

16,000

20,000

6

Impairment Loss-Loans & Receivables

-

5,000

6

Totals

-

20,000

….

* Hint: Recall that the "Cash Treasury/Agency Deposit, Regular" account is closed directly to the “Accumulated Surplus Deficit" account. In the statement of changes in net assets/equity, this is presented under the " adjustment of net revenue recognized directly in net assets/equity" line item.

Additional Information:

a. Entity A received NCA of P 1,050,000 in 2022. Unused NCA reverted at year-end amounted to P43,000 b. The unbilled tax revenues were collected in cash c. All collections of revenues, billed and unbilled, were remitted to the National Treasury. d. Taxes withheld in 2022 on payments of: - Personnel Services, P90,000 - Maintenance and Other Operating Expenses P20,000 - Purchase of Inventories P10,000 - Purchase of office equipment P20,000 e. Salary deductions for contributions to GSIS. Philhealth and Pag-ibig in 2022 amounted to P60,000 f. Taxes withheld and other salary deductions are aggregated and presented under the "inter agency payable" line item.

g. Only the purchase of office supplies inventory affected the accounts payable in 2022. h. For simplicity, assume there are no basis, timing or entity differences between "budgeted amounts" and "actual amounts on a comparable basis". The following are relevant to the preparation of the statement of comparison of budget and actual amounts.

Budgeted and Actual Receipts

I. Original Budgeted Receipts The total original budgeted receipts amount to P 300,000. This is sourced from the 2022 Budget of Expenditures and Sources of Financing. It constitutes the projected revenues/receipts for the following:

Tax Revenue

P 40,000

Services and Business Income

260,000

II - Final Budgeted Receipts (There are no adjustments to the original budget)

III - Actual Receipts on Comparable Basis The total actual receipts on a comparable basis amount to P250,000. This is based on the Consolidated Actual Revenue Collections per FAR No. 5, Statement of Financial Performance and Statement of Cash Flows. It constitutes the actual collections/receipts from tax revenue and services and business income that will accrue to the General Fund and Special Account in the General Fund.

Budgeted and Actual Payments

IV. Original Budget The original budget for payments of PS, MOOE and CO amounts to P1,200,000. This is based on the Current Year's Appropriations, sourced from the Statement of Appropriations, Allotments, Obligations, Disbursements and Balances (FAR No.1). It consists of the following:

Personnel Services Maintenance and Other Operating Expenses Capital Outlay

P 420,000 480,000 300,000

V - Final Budget The final budget amounts to P 1,200,000. This include a P20,000 realignment from PS to CO.

VII - Actual Payments

The actual payments for PS, MOOE and CO, based on the Disbursements for payment of Current Year's Obligations (from current year and Continuing Appropriations) sourced from FAR No. 1 consist of the following:

Personnel Services

P 400,000

Maintenance and Other Operating Expenses

450,000

Capital Outlay

320,000

Requirements: a. Prepare a comparative statement of financial position showing cross-references to the notes for the following line items: 1. Receivables 2. Property, Plant, and Equipment 3. Inter-agency Payables

b. Prepare a comparative statement of financial performance showing cross-references to the notes for the following line items: 4. Personnel Services 5. Maintenance and Other Operating Expenses 6. Non-cash Expenses

c. Prepare a comparative statement of changes in net assets/equity. d. Prepare the 2022 statement of cash flows e. Prepare the 2022 statement of comparison of budget and actual amounts. f. Prepare comparative partial notes showing the breakdowns of the cross-referenced line items.

X

Requirement A Statement of Financial Position

As of December 31,2022 ASSET S Current Assets Cash & Cash Equivalents Receivables

Not e

2021

2022

1

30,000 80,000

30,000 115,000

0 110,00 0

20,000

Inventory Total Current Assets Non-Current Assets

165,000

310,00 0 310,00 0 420,0 00

765,000

60,000

90,000

27,000

0

87,000

90,000

87,000

90,000

TOTAL ASSETS LESS LIABILITIES

333,0 00

675,000

NET ASSETS/EQUITY Accumulated Surplus(Deficit) TOTAL NET ASSETS/EQUITY

333,00 0 333,0 00

Property, Plant, & Equipment Total Non-Current Assets TOTAL ASSETS

2

600,000 600,000

LIABILITIES Current liabilities Financial Liabilities Inter-Agency Payables Total Current Liabilities TOTAL LIABILITIES

3

655,000 655,000

Requirement B: Statement of Financial Performance For the year Ended December 31,2022 Revenues Tax Revenue Service And Business Income Total Revenues Less: Expenses Personnel Services Maintenance and Other Operating Expenses Non-Cash Expenses Total Expenses Surplus/(Deficit) From Operations Financial Assistance/Subsidy Surplus/(Deficit) for the Period

Requirement C:

Note

2021 40,000

2022 50,000

192,000

240,000

232,000

290,000

4 5

319,000 344,000

400,000 430,000

6

40,000

55,000

703,000 (471,00 0)

885,000 (595,00 0) 1,167,0 00 572,00 0

934,000 463,00 0

Statement of Changes in Net Asset/Equity For the year Ended December 31,2022

Accumulated Surplus(Deficit), January 01 Add: Surplus for the Period Total Less: adjustment of net revenue recognized directly in Equity Accumulated Surplus(Deficit), December 31

2021 160,000

2022 333,000

463,000

572,000

623,000 (290,00 0) 333,00 0

905,000 (250,00 0) 655,00 0

Requirement D Statement of Cash Flows For the Period Ended December 31,2022 Cash & Cash Equivalents, January 01 Operating Activities: Cash Inflows Notice of Cash Allocation Collection of Revenues

30,000

1,210,0 00

Total Cash Inflows

250,000 1,460,0 00

Cash Outflows Payment of Expenses*

640,000

Remittance of Benefit Contribution & Mandatory Deductions** Remittance to National Treasury*** Unused NCA Total Cash Outflows Net Cash Provided by Operating Activities Investing Activities

67,000 410,000 43,000 1,160,0 00 300,00 0

Cash Inflows Cash Outflows Purchase of PPE**** Total Cash Outflows

0

300,000

Net Cash Provided by Investing Activities

300,000 (300,00 0)

Financing Activities Cash Inflows

0

Cash Outflows Net Cash Provided by Financing Activities

0 0

Cash & Cash Equivalents, December 31

30,000

*Payment of Expenses Personnel Taxes Withheld TRA MOOE Taxes Withheld Salary Deductions Total

400,00 0 (90,00 0) (20,00 0) 430,00 0 (20,00 0) (60,00 0) 640,0 00

**Remmitance of Benefit Contribution & Mandatory Deductions Salary Deductions Prior Period Dues Total

60,000 7,000 67,00 0

Personnel Taxes Wittheld MOOE Taxes Withheld

90,000 20,000

***Remmitance to Nat Treasury

CO Taxes Withheld

20,000

TRA

20,000 250,00 0 10,000 410,0 00

Revenue Collected Inventory Purchase Taxes Withheld Total ****Purchase of PPE

320,00 0 (20,00 0) 300,0 00

Capital Outlay Tax Withheld Total

Requirement E

Statement of Comparison of Budget and Actual Amounts For the Year Ended December 31, 2022

Receipts Tax Revenue Services & Business Income Total Receipts Payments Personnel Services Maintenance & Other Operating Expenses

Capital Outlays Total Payments Net Receipts (Payments)

Budgeted Amounts Original Final 40,000 40,000 260,000 260,000

420,000 480,000 300,000

400,000 480,000 320,000

Actual Amounts 50,000 200,000

400,000 450,000 320,000

Difference (10,000) 60,000 50,000

0 30,000 0 30,000 20,000

Requirement F Notes to Financial Statements

Note 1

2021 Receivables Accounts Receivable Allowance for Impairment - A/R Total Receivables

2

2022

Property, Plant, & Equipment Buildings Accumulated Depreciation-Buildings Office Equipment Accumulated Depreciation-OE

80,000 0 80,000

120,000 (5,000) 115,00 0

800,000 (650,00 0) 340,000 (180,00

800,000 (680,00 0) 660,000 (180,00

3

Total Property, Plant, & Equipment Inter-Agency Payables Due to BIR Due to GSIS

5

6

0) 600,00 0

20,000 4,000

0 0

2,000

0

Due to PhilHealth Total Inter-Agency Payables

1,000 27,000

0 0

Personnel Services Salaries and Wages, Regular

303,000

380,000

PERA Total Personnel Services

16,000 319,00 0

20,000 400,00 0

Due to PAG-IBIG

4

0) 310,00 0

Maintenance and Other Operating Expenses Office Supplies Expense 104,000 Water Expenses 16,000 Electricity Expenses 48,000

130,000 20,000 60,000

Telephone Expenses Janitorial Expenses

32,000 64,000

40,000 80,000

Security Expenses

80,000 344,00 0

100,000 430,00 0

24,000 16,000

30,000 20,000

0

5,000

40,000

55,000

Total MOOE Non-Cash Expenses Depreciation-Buildings & Other Structures Depreciation- Machinery & Equipment Impairment Loss-Loans & Receivables Total Non-Cash Expenses...