Govt Accounting Quiz prob rca tb 2 PDF

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NGOVACC 191QUIZ 2PROBLEMS For each of the following cases, prepare the necessary journal entries in the books of a national government agency (NGA). Select the accounts from the UACS accounts shown on the following pages. If no journal entry is required, state how the transaction should be recorded....

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NGOVACC 191 QUIZ 2 PROBLEMS 23. For each of the following cases, prepare the necessary journal entries in the books of a national government agency (NGA). Select the accounts from the UACS accounts shown on the following pages. If no journal entry is required, state how the transaction should be recorded. a.

Agency Alpha had the following transactions for fiscal year 2020. i. Petty Cash Fund was established for estimated expenses of P25,000. ii. The Fund was replenished for the following expenses – (a) travelling – local, P12,500, (b) office supplies,

P8,000, (c) other maintenance and operating expenses –P4,000 iii The Petty Cash Custodian resigned and returned the unused petty cash. b. Agency Bravo issued a purchase order for the purchase of office equipment costing P60,000. The equipment was delivered with the charge invoice and was paid by check after withholding tax of 8%. The Agency remitted the tax withheld thru Tax Remittance Advice. c. Cash advances were released to the head of Agency Charlie for travelling expenses to attend a convention in Singapore in the amount of P50,000. After the convention, cash advances were liquidated and P2,000 representing excess cash advance is refunded and deposited. Answers: a.i. Petty Cash Fund was established for estimated expenses of P25,000. Petty Cash 25,000 Cash-MDS, Regular 25,000 a.ii. The Fund was replenished for the following expenses – (a) travelling – local, P12,500, (b) office supplies,

P8,000, (c) other maintenance and operating expenses –P4,000 Travelling – local, Office supplies, Other maintenance and operating expenses Cash-MDS, Regular

P12,500 P8,000 P4,000 24,500

a.iii. The Petty Cash Custodian resigned and returned the unused petty cash. Cash-Collecting officer 500 Petty Cash 500 b. Office equipment Accounts payable Purchase of office equipment

60,000

Accounts Payable Cash-MDS, Regular Due to BIR

60,000

c. Advances to officers and employees Cash-MDS, regular Granting of cash advance for travel abroad

50,000

60,000

55,200 4800

50,000

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Traveling expense-Foreign Advances to Officers and employees Liquidation of cash advance for travel abroad

48,000 48,000

24. Refer to the unadjusted trial balance for Agency DEF as of December 31, 2019 shown on the last page.

Additional information are as follows: a. The interest earned but not yet billed/collected as of the end of the year amounted to P3,000. b. As of year-end, the agency had unpaid salaries and wages amounting to P20,500 covering the period December 16-31. c. One-half of the amount of prepaid rent had been utilized. d. Per aging of accounts, the required allowance for doubtful accounts should be P1,000. e. Estimated useful lives of depreciable assets are as follows (in years): Buildings Machinery & Equipment Office equipment Assume 10% residual value. f.

20 5 5

Furniture and fixtures Other transportation equipment Books

10 10 5

The agency collected P8,000 for the rent of its facility and originally recorded the collection as deferred credit to income. At the end of the year, P2,000 was earned.

Required: i. Prepare the necessary adjusting entries. ii. Prepare closing entries to zero out all balances of nominal/temporary and intermediate accounts.

Answers: Adjusting entries a. Interest Receivable Interest Income

3,000 3,000

b. Salaries and Wages Due to Officers and employees

20,500

c.

6,250

Rent Expense Prepaid Rent

20,500

6,250

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REVISED CHART OF ACCOUNTS - SELECTED ACCOUNTS Account Title Cash – Collecting Officers Petty Cash Cash – Treasury/Agency Deposit, Regular Cash – Modified Disbursement System (MDS), Regular Cash – Tax Remittance Advice Cash – Constructive Income Remittance Cash in Bank – Local Currency – Current Account Cash in Bank – Local Currency – Savings Account Accounts Receivable Due from Officers and Employees Due from National Government Agencies Due from Local Government Units Due from Central Office Due from Regional Offices Receivables-Disallowances/Charges Other Receivables Advances for Operating Expenses Advances for Payroll Advances to Special Disbursing Officer Advances to Officers and Employees Advances to Contractors Prepaid Rent Prepaid Registration Prepaid Insurance Office Supplies Inventory Other Prepayments Guaranty Deposits Other Deposits Investment Property, Buildings Accumulated Depreciation – Investment Property, Buildings Buildings Accumulated Depreciation – Buildings Machinery Accumulated Depreciation – Machinery Office Equipment Accumulated Depreciation – Office Equipment ICT Equipment Accumulated Depreciation – ICT Equipment Motor Vehicles Accumulated Depreciation – Motor Vehicles Other Transportation Equipment Accumulated Depreciation – Other Transportation Equipment Furniture and Fixtures Accumulated Depreciation – Furniture and Fixtures Construction in Progress – Infrastructure Assets Construction in Progress – Buildings and Other Structures Construction in Progress – Land Improvements Other Assets Accounts Payable Due to Officers and Employees Service Concession Arrangements Payable

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Tax Refund Payable Due to BIR Due to GSIS Due to Pag-IBIG Due to Philhealth Due to NGAs Due to Central Office Due to Bureaus Due to Regional Offices Due to Operating Units Due to Other Funds Guaranty/Security Deposits Payable Customers’ Deposits Payable Deferred Service Concession Revenue Other Deferred Credits Other Unearned Revenue Other Payables Accumulated Surplus/(Deficit) Contributed Capital Revaluation Surplus Revenue and Expense Summary Subsidy from National Government Subsidy from other National Government Agencies Subsidy from Central Office Subsidy from Regional Office/Staff Bureau Subsidy from Other Funds Income from Grants and Donations in Cash Income from Grants and Donations in Kind Miscellaneous Income Salaries and Wages-Regular Personnel Economic Relief Allowance (PERA) Retirement and Life Insurance Premiums Pag-IBIG Contributions PhilHealth Contributions Employees Compensation Insurance Premiums Provident/Welfare Fund Contributions Traveling Expenses-Local Traveling Expenses-Foreign Training Expenses Scholarship Grants/Expenses Office Supplies Expenses Accountable Forms Expenses Fuel, Oil and Lubricants Expenses Textbooks and Instructional Materials Expenses Other Supplies and Materials Expenses Water Expenses Electricity Expenses Postage and Courier Expenses Telephone Expenses Legal Services Consultancy Services Other Professional Services Environment/Sanitary Services Janitorial Services

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Security Services Other General Services Subsidy to NGAs Subsidy to Regional Offices/Staff Bureaus Subsidy to Operating Units Subsidy to Other Funds Advertising Expenses Printing and Publication Expenses Representation Expenses Transportation and Delivery Expenses Rent/Lease Expenses Subscription Expenses Donations Other Maintenance and Operating Expenses Depreciation-Buildings and Other Structures Depreciation-Machinery and Equipment

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