PROBLEM 3-8 WORKSHEET PREPARATION
1. Record the transactions and events. If no journal entry is needed, state the registry or
other document where the transaction or event is recorded.
a. Received GAA amounting to P 1,200,000.
The receipt of the appropriation of P 1,200,000 is posted (recorded) in the Registry of Appropriations
and Allotments (RAPAL).
b. Received allotment amounting to P 1,100,000.
The receipt of the allotment of P 1,100,000 is posted (recorded) in the Registry of Appropriations and
Allotments (RAPAL) and Registries of Allotments, Obligations and Disbursements (RAOD).
c. Entity A enters into the following contracts:
Employment contracts
P 420,000
Purchase of office equipment
300,000
Purchase of office supplies
150,000
Contracts for various MOOE’s
230,000
The obligations are recorded in the Obligation Request and Status (ORS) and Registries of
Allotments, Obligations and Disbursements (RAOD).
d. Receipt of Notice of Cash Allocation amounting to P 1,050,000.
Cash – Modified Disbursement System (MDS), Regular
1,050,000
Subsidy from National Government
To recognize receipt of NCA from DBM
The NCA is also posted (recorded) in the Registry of Allotments and Notice of Cash Allocations
(RANCA).
e. Accrual of P 400,000 salaries upon approval of payroll, including granting of cash advance and
liquidation thereof. The breakdown of salaries is as follows:
Salaries and Wages
380,000
Personal Economic Relief Allowance (PERA)
20,000
Gross Compensation
400,000
Withholding Tax
90,000
GSIS
30,000
Pag-IBIG
20,000
PhilHealth
10,000
Total Salary Deductions
150,000
Salaries and Wages, Regular
380,000
Personal Economic Relief Allowance (PERA)
20,000
Due to BIR
Due to GSIS
Due to Pag-IBIG
Due to PhilHealth
Due to Officers and Employees
To recognize payable to officers and employees upon approval of
payroll
Granting of cash advance for the payroll:
Advances for Payroll
250,000
Cash – Modified Disbursement System (MDS), Regular
To recognize grant of cash advance for payroll
Liquidation of cash advance for payroll:
Due to Officers and Employees
250,000
Advances for Payroll
To recognize liquidation of payroll fund
f. Received delivery of purchased office equipment worth P 320,000, on account (including not yet
due and demandable obligation from previous year).
Office Equipment
320,000
Accounts Payable
To recognize delivery of office equipment
g. Payment of accounts payable. Taxes withheld amount to P 20,000.
Accounts Payable
320,000
Due to BIR
Cash – Modified Disbursement System (MDS), Regular
To recognize payment of accounts payable
h. Receipt of delivery of purchased office supplies worth P 150,000, on account.
Office supplies Inventory
150,000
Accounts Payable
To recognize delivery of office supplies
i. Payment of P 120,000 accounts payable. Taxes withheld amount to P 10,000.
Accounts Payable
120,000
Due to BIR
Cash – Modified Disbursement System (MDS), Regular
To recognize payment of accounts payable
j. Payment for the following expenses:
Water
20,000
Electricity
60,000
Telephone
40,000
Janitorial
80,000
Security
100,000
Total
300,000
Less: Withholding taxes
-20,000
Net
280,000
Water Expenses
20,000
Electricity Expenses
60,000
Telephone Expenses
40,000
Janitorial Expenses
80,000
Security Expenses
100,00
Due to BIR
Cash – Modified Disbursement System (MDS), Regular
To recognize issuance of MDS checks as payment for expenses
k. Issued office supplies worth P 130,000 to end users.
Office Supplies Expense
130,000
Office Supplies Inventory
To recognize issuance of office supplies to end users
l. Billed revenue for Waterworks System Fees amounting to P 240,000.
Accounts receivable
240,000
Waterworks System Fees
To recognize billing of income
m. Collected P 200,000 from billed revenue and remitted total collection.
Cash – Collecting Officers
200,000
Accounts receivable
To recognize collection of current year’s billed income
Cash - Treasury / Agency Deposit, Regular
200,000
Cash – Collecting Officers
To recognize remittance of income to the BTr
n. Collected P 50,000 unbilled tax revenue for Tax on Delivery Vans and Trucks through direct deposit
in Authorized Agent Banks.
Cash – Treasury / Agency Deposit, Regular
50,000
Tax on Delivery Vans and Trucks
To recognize collection and remittance of income to BTr through
AGDB / GSB.
o. Remitted all taxes withheld to the BIR, including those from prior year.
Cash – Tax Remittance Advice
160,000
Subsidy from National Government
To recognize the constructive receipt of NCA for TRA
Due to BIR
160,000
Cash – Tax Remittance Advice
To recognize the constructive remittance of taxes withheld to
the BIR through the TRA
p. Remitted all contributions due to GSIS, PhilHealth and Pag-IBIG, including those from prior year.
Due to GSIS
34,000
Due to Pag-IBIG
22,000
Due to PhilHealth
11,000
Cash – Modified Disbursement System (MDS), Regular
To recognize remittance to GSIS, Pag-IBIG and PhilHealth
3. Prepare the unadjusted trial balance.
UNADJUSTED TRIAL BALANCE
Accounts
RCA Code
Cash – Collecting Officers
10101010
Cash – Treasury/Agency Deposit, Regular
Cash – Modified Disbursement System (MDS), Regular
Cash – Tax Remittance Advice
Accounts Receivable
Office Supplies Inventory
Buildings
Accumulated Depreciation – Building
Office Equipment
Accumulated Depreciation – Office Equipment
Advances for Payroll
Accounts Payable
Due to Officers and Employees
Due to BIR
Due to GSIS
Due to Pag-IBIG
Due to PhilHealth
Accumulated Surplus/ (Deficit)
Tax on Delivery Vans and Trucks
Waterworks System Fee
Subsidy from National Government
Salaries and Wages, Regular
Personal Economic Relief Allowance (PERA)
Office Supplies Expenses
Water Expenses
Electricity Expenses
Telephone Expenses
Janitorial Expenses
Security Expenses
Totals
10104010
10104040
10104070
10301010
10404010
10604010
10604011
10605020
10605021
19901020
20101010
20101010
20201010
20201020
20201030
20201040
30101010
40201010
40202100
40301010
50101010
50102010
50203010
50204010
50204020
50205020
50212020
50212030
4. Prepare the adjusting entries.
Adjusting entries:
Reversion of unused NCA
Subsidy from National Government
43,000
Cash – Modified Disbursement System (MDS), Regular
To recognize reversion of unused NCA
Depreciation Expenses:
Depreciation – Building
30,000
Accumulated Depreciation – Building
To recognize depreciation of buildings
Depreciation – Office Equipment
20,000
Accumulated Depreciation – Office Equipment
To recognize depreciation of office equipment
Allowance for impairment on accounts receivable for P 5,000.
Impairment Loss – Loans and Receivables
5,000
Allowance for Impairment – A/R
To recognize loss allowance accounts receivable
5. Complete the worksheet showing columns for post-closing trial balance.
Accounts
RCA Code
Cash – Collecting Officers
Cash – Treasury/Agency Deposit, Regular
Cash – Modified Disbursement System (MDS), Regular
Accounts Receivable
Office Supplies Inventory
Building
Accumulated Depreciation – Building
Office Equipment
Accumulated Depreciation – Office Equipment
Accounts Payable
Accumulated Surplus/ (Deficit)
Tax on Delivery Vans and Trucks
Waterworks System Fee
Subsidy from National Government
Salaries and Wages, Regular
Personal Economic Relief Allowance (PERA)
Office Supplies Expenses
Water Expenses
Electricity Expenses
Telephone Expenses
Janitorial Expenses
Security Expenses
10101010
10104010
10104040
10301010
10404010
10604010
10604011
10605020
10605021
20101010
30101010
40201010
40202100
40301010
50101010
50102010
50203010
50204010
50204020
50205020
50212020
50212030
Adjustments:
Depreciation - Building
Depreciation - Office Equipment
Impairment Loss - Loans and Receivables
Allowance for Impairment - A/R
Totals
50501040
50501050
50503020
10301011
6. Prepare the closing entries.
Closing entries:
Accumulated Surplus/ (Deficit)
250,000
Cash – Treasury/Agency Deposit, Regular
To recognize closing of cash deposit account
Subsidy from National Government
Revenue and Expense Summary
1,167,000
To recognize closing of subsidy account
Tax on Delivery Vans and Trucks
50,000
Waterworks System Fees
240,000
Revenue and Expense Summary
595,000
Salaries and Wages, Regular
Personal Economic Relief Allowance (PERA)
Office Supplies Expense
Water Expenses
Electricity Expenses
Telephone Expenses
Janitorial Expenses
Security Expenses
Depreciation – Building
Depreciation – Office Equipment
To recognize closing of income and expense accounts
Revenue and Expense Summary
572,000
Accumulated Surplus/ (Deficit)
To recognize closing of revenue and expense summary
7. Prepare the statement of financial position with cross references to the notes.
ENTITY A
STATEMENT OF FINANCIAL POSITION
(REGULAR AGENCY FUND)
AS AT DECEMBER 31, 20X1
ASSETS
Current Assets
Cash and Cash Equivalents
Receivables
Inventories
Total Current Assets
Noncurrent Assets
Property, Plant and Equipment
Total Noncurrent Assets
TOTAL ASSETS
Current Liabilities
Financial Liabilities
Total Current Liabilities
Notes
1
2
TOTAL LIABILITIES
TOTAL ASSETS less TOTAL LIABILITIES
NET ASSETS/EQUITY
Accumulated Surplus/(Deficit)
TOTAL NET ASSETS/EQUITY
8. Prepare the statement of financial performance with cross references to the notes.
ENTITY A
STATEMENT OF FINANCIAL PERFORMANCE
(REGULAR AGENCY FUND)
FOR THE YEAR ENDED DECEMBER 31, 20X1
REVENUE
Tax Revenue
Service and Business Income
TOTAL REVENUE
Notes
Less: CURRENT OPERATING EXPENSES
Personnel Services
Maintenance and Other Operating Expenses
Non-cash Expenses
TOTAL CURRENT OPERATING EXPENSES
3
4
5
SURPLUS/ (DEFICIT) FROM CURRENT OPERATIONS
Net Financial Assistance/Subsidy
SURPLUS/ (DEFICIT) FOR THE PERIOD
9. Prepare the notes to the financial statements showing breakdowns for the ff. line items.
ENTITY A
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 20X1
Note 1: Receivables
This account consists of the following:
Accounts Receivable
Less: Allowance for Impairment - A/R
Accounts Receivable, net
Note 2: Property, Plant and Equipment
This account consists of the following:
Buildings
Office Equipment
Total Cost
Accumulated Depreciation - Building
Accumulated Depreciation - Office Equipment
Total Accumulated Depreciation
Property, Plant and Equipment, net
Note 3: Personnel Services
This account consist of the following:
Salaries and Wages, Regular
PERA
Personnel Services
Note 4: Maintenance and Other Operating Expenses
This account consist of the following:
Office Supplies Expense
Water Expenses
Electricity Expenses
Telephone Expenses
Janitorial Expenses
Security Expenses
Maintenance and Other Operating Expenses
Note 5: Non-cash Expenses
This account consist of the following:
Depreciation - Buildings
Depreciation - Office Equipment
Impairment Loss - Loans and Receivables
Non-cash Expenses
state the registry or
2. Post the transactions in the ledger. Use T-accounts.
ASSETS
Cash – Collecting Officers
e Registry of Appropriations
Beg.
30,000
(m)
200,000
200,000
(m)
gistry of Appropriations and
ments (RAOD).
30,000
Cash – Tax Remittance Advice
and Registries of
(o)
160,000
160,000
(o)
1,050,000
Buildings
of Cash Allocations
Beg.
800,000
g of cash advance and
800,000
Accumulated Depreciation –
Office Equipment
180,000
180,000
LIABILITIES
Accounts Payable
60,000
Beg.
90,000
(f)
320,000
320,000
(f)
30,000
(i)
120,000
150,000
(h)
20,000
10,000
250,000
90,000
Due to GSIS
(p)
34,000
4,000
Beg.
30,000
(e)
-
250,000
EQUITY
Accumulated Surplus/ (Deficit)
250,000
333,000
count (including not yet
333,000
320,000
INCOME
Tax on Delivery Vans and Trucks
20,000
50,000
300,00
50,000
ount.
150,000
EXPENSES
Salaries and wages, Regular
000.
(e)
380,000
380,000
10,000
110,000
Water Expenses
(j)
20,000
20,000
Janitorial Expenses
(j)
80,000
80,000
20,000
(n)
280,000
130,000
240,000
200,000
200,000
ucks through direct deposit
50,000
160,000
160,000
g those from prior year.
67,000
Debit
30,000
Credit
250,000
43,000
120,000
20,000
800,000
650,000
660,000
180,000
90,000
333,000
50,000
240,000
1,210,000
380,000
20,000
130,000
20,000
60,000
40,000
80,000
100,000
2,753,000
43,000
30,000
20,000
2,753,000
5,000
Unadjusted Trial Balance
Debit
Credit
Adjustments
Debit
Credit
30,000
250,000
30,000
250,000
43,000
120,000
20,000
800,000
43,000
660,000
660,000
180,000
90,000
333,000
50,000
240,000
1,210,000
20,000
43,000
380,000
20,000
130,000
20,000
60,000
40,000
80,000
100,000
380,000
20,000
130,000
20,000
60,000
40,000
80,000
100,000
30,000
20,000
5,000
250,000
1,167,000
120,000
20,000
800,000
30,000
650,000
2,753,000
Adjusted Trial Balance
Debit
2,753,000
98,000
30,000
20,000
5,000
5,000
98,000
2,765,000
380,000
20,000
130,000
20,000
60,000
40,000
80,000
100,000
30,000
20,000
572,000
o the notes.
30,000
115,000
20,000
165,000
580,000
580,000
745,000
90,000
90,000
90,000
655,000
655,000
655,000
ces to the notes.
50,000
240,000
290,000
400,000
430,000
55,000
885,000
-595,000
1,167,000
572,000
s for the ff. line items.
120,000
5,000
115,000
800,000
660,000
1,460,000
680,000
200,000
880,000
580,000
380,000
20,000
400,000
130,000
20,000
60,000
40,000
80,000
100,000
430,000
30,000
20,000
5,000
55,000
ger. Use T-accounts.
GENERAL LEDGER
Cash – Treasury/Agency Deposit, Regular
(m)
200,000
(n)
50,000
Cash – Modified Disbursement
(d)
250,000
Accounts Receivable
Beg.
Office Supplies I
80,000
240,000
(l)
(h)
200,000
(m)
120,000
Accumulated Depreciation – Bldg.
Office Equipm
650,000
Beg.
(f)
650,000
Advances for Payroll
(e)
250,000
250,000
(e)
-
Due to Officers and Employees
250,000
(e)
Due to BI
(e)
250,000
(o)
Due to Pag-IBIG
(p)
22,000
Due to PhilH
2,000
Beg.
20,000
(e)
(n)
-
Waterworks System Fee
240,000
Subsidy from Nationa
(l)
240,000
PERA
(e)
Office Supplies E
20,000
(k)
20,000
Electricity Expenses
(j)
60,000
(j)
60,000
Security Expenses
(j)
Telephone Exp
100,000
100,000
Adjusted Trial Balance
Credit
Statement of Financial Performance
Debit
Credit
Statement of Financial Position
Debit
Credit
30,000
250,000
120,000
20,000
800,000
680,000
680,000
660,000
200,000
90,000
333,000
50,000
240,000
1,167,000
200,000
90,000
333,000
50,000
240,000
1,167,000
380,000
20,000
130,000
20,000
60,000
40,000
80,000
100,000
30,000
20,000
5,000
5,000
2,765,000
885,000
1,457,000
1,880,000
572,000
1,457,000
5,000
1,308,000
572,000
1,457,000
1,880,000
1,880,000
Cash – Modified Disbursement System (MDS), Regular
1,050,000
250,000
(e)
300,000
(g)
110,000
(i)
280,000
(j)
67,000
(p)
43,000
Office Supplies Inventory
150,000
130,000
(k)
20,000
Office Equipment
340,000
320,000
660,000
Due to BIR
160,000
-
20,000
Beg.
90,000
(e)
10,000
(i)
20,000
(j)
Due to PhilHealth
11,000
1,000
Beg.
10,000
(e)
-
Subsidy from National Government
1,050,000
(d)
160,000
(o)
1,210,000
Office Supplies Expenses
130,000
130,000
Telephone Expenses
40,000
40,000
Closing Entries
Debit
Credit
Post Closing Trial Balance
Debit
Credit
30,000
250,000
120,000
20,000
800,000
680,000
660,000
250,000
50,000
240,000
1,167,000
200,000
90,000
655,000
572,000
380,000
20,000
130,000
20,000
60,000
40,000
80,000
100,000
30,000
20,000
5,000
1,707,000
1,707,000
1,630,000
5,000
1,630,000