EXERCISE 2
REQUIREMENT 1
Prepare the necessary journal entries for the given transactions.
TRANSACTION
1)
2)
DEBIT
Memorandum
Entries in RAOPS,
RAOCO, RAOMO,
and RAOFE
Cash - NTMDS
P2,500
Subsidiary Income
from National
Government
3)
4)
Memorandum
Entries in RAOPS,
RAOCO, RAOMO,
and RAOFE
Office Equipment
P2,500
120
Accounts Payable
5)
Intangible Asset - IT
Software
120
30
Accounts Payable
6)
Prepaid Rent
30
60
Cash - NTMDS
7)
Electricity Expense
60
50
Cash - NTMDS
8)
Telephone Expense
50
40
Cash - NTMDS
9)
Advances to
Disbursing Officer
40
45
Cash - NTMDS
10)
Accounts Payable
45
120
Due to BIR
Cash - NTMDS
11)
Accounts Payable
12
108
30
Cash - NTMDS
12)
CREDIT
Tax Remittance
Advice
30
12
Subsidiary Income
from National
Government
12
13)
Cash - collecting
Officers
50
Other Service Income
Sales Revenue
14)
Cash in Bank - LCCA
10
40
50
Cash - collecting
officers
Depreciation
Rent Expense
Amortization
Expense - IT
Software
Depreciation
Expense - equipment
50
5
20
Accumulated
Amortization - IT
Software
5
Accumulated
Depreciation - Office
Equipment
20
Rent Expense
30
Prepaid Rent
30
REQUIREMENT 2
Prepare the necessary closing journal entries for the given transactions.
1
DEBIT
P2,167
Subsidiary Income
from National
Government
Cash NTMDS
CREDIT
Cash - NTMDS
2,500
P2,167
50 7
To revert unused NCA.
2
Notice of Cash
Allotment Total,
beginning
MDS checks issued
Unused Portion
2,500
Subsidiary Income
from National
Government
345
(333)
2,167
60 6
40 8
45 9
108 10
30 11
2,167
SING
2,167
2,500
Sales Revenue
Other Service Income
40
10
Income and
Expense
Summary
12
345
395
To close revenue to
income summary
account
3
Income and Expense
Summary
145
Various
Expenses
4
Income and Expense
Summary
145
250
Retained
Operating
Surplus
5
Retained Operating
Surplus
250
250
Government
Equity
250
REQUIREMENT 3
Preparation of Income Statement of the Agency
Income Statement
For the year ended December 31, 2013
Subsidiary Income from National Government
Reversion of Unutilized NCA
Sales
Other Service Income
Total Income
Less: Expenses
Maintenance and Other Operating Expenses
Net Income Over Expenses
2,512
2,167
345
40
10
395
145
250