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 10104010
Cash – Modified Disbursement System (MDS), Regular 10104040
Cash – Tax Remittance Advice 10104070
Accounts Receivable 10301010
Office Supplies Inventory 10404010
Buildings 10604010
Accumulated Depreciation – Building 10604011
Office Equipment 10605020
Accumulated Depreciation – Office Equipment 10605021
Advances for Payroll 19901020
Accounts Payable 20101010
Due to Officers and Employees 20101010
Due to BIR 20201010
Due to GSIS 20201020
Due to Pag-IBIG 20201030
Due to PhilHealth 20201040
Accumulated Surplus/ (Deficit) 30101010
Tax on Delivery Vans and Trucks 40201010
Waterworks System Fee 40202100
Subsidy from National Government 40301010
Salaries and Wages, Regular 50101010
Personal Economic Relief Allowance (PERA) 50102010
Office Supplies Expenses 50203010
Water Expenses 50204010
Electricity Expenses 50204020
Telephone Expenses 50205020
Janitorial Expenses 50212020
Security Expenses 50212030
Totals

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 10101010

Cash – Treasury/Agency Deposit, Regular 10104010
Cash – Modified Disbursement System (MDS), Regular 10104040
Accounts Receivable 10301010
Office Supplies Inventory 10404010
Building 10604010
Accumulated Depreciation – Building 10604011
Office Equipment 10605020
Accumulated Depreciation – Office Equipment 10605021
Accounts Payable 20101010
Accumulated Surplus/ (Deficit) 30101010
Tax on Delivery Vans and Trucks 40201010
Waterworks System Fee 40202100
Subsidy from National Government 40301010
Salaries and Wages, Regular 50101010
Personal Economic Relief Allowance (PERA) 50102010
Office Supplies Expenses 50203010
Water Expenses 50204010
Electricity Expenses 50204020
Telephone Expenses 50205020
Janitorial Expenses 50212020
Security Expenses 50212030
Adjustments:
Depreciation - Building 50501040
Depreciation - Office Equipment 50501050
Impairment Loss - Loans and Receivables 50503020
Allowance for Impairment - A/R 10301011
Totals

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 1,167,000
Revenue and Expense Summary
 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 Notes
Current Assets
Cash and Cash Equivalents
Receivables 1
Inventories
Total Current Assets

Noncurrent Assets
Property, Plant and Equipment 2
Total Noncurrent Assets

TOTAL ASSETS

Current Liabilities
Financial Liabilities
Total Current Liabilities
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 Notes
Tax Revenue
Service and Business Income
TOTAL REVENUE

Less: CURRENT OPERATING EXPENSES

Personnel Services 3
Maintenance and Other Operating Expenses 4
Non-cash Expenses 5
TOTAL CURRENT OPERATING EXPENSES

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 90,000
10,000
250,000
 Due to GSIS

4,000 Beg.
(p) 34,000 30,000 (e)
250,000 -

EQUITY
250,000 Accumulated Surplus/ (Deficit)
333,000
count (including not yet

333,000
320,000

INCOME
Tax on Delivery Vans and Trucks
20,000 50,000 (n)
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
 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 Credit
30,000
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 2,753,000

43,000

30,000

20,000
 5,000

Unadjusted Trial Balance Adjustments Adjusted Trial Balance

Debit Credit Debit Credit Debit
30,000 30,000
250,000 250,000
43,000 43,000 -
120,000 120,000
20,000 20,000
800,000 800,000
650,000 30,000
660,000 660,000
180,000 20,000
90,000
333,000
50,000
240,000
1,210,000 43,000
380,000 380,000
20,000 20,000
130,000 130,000
20,000 20,000
60,000 60,000
40,000 40,000
80,000 80,000
100,000 100,000

30,000 30,000
20,000 20,000
5,000 5,000
5,000
2,753,000 2,753,000 98,000 98,000 2,765,000

250,000

1,167,000
 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 Cash – Modified Disbursement

(m) 200,000 (d)

(n) 50,000

250,000

Accounts Receivable Office Supplies I

Beg. 80,000 (h)

(l) 240,000 200,000 (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 Due to BI

250,000 (e)
(e) 250,000
-
(o)
 Due to Pag-IBIG Due to PhilH

2,000 Beg.
(p) 22,000 20,000 (e) (n)

Waterworks System Fee Subsidy from Nationa

240,000 (l)

240,000

PERA Office Supplies E

(e) 20,000 (k)

20,000

Electricity Expenses Telephone Exp

(j) 60,000 (j)

60,000

Security Expenses
(j) 100,000
100,000
Adjusted Trial Balance Statement of Financial Performance Statement of Financial Position
Credit Debit Credit Debit Credit
30,000
250,000

120,000
20,000
800,000
680,000 680,000
660,000
200,000 200,000
90,000 90,000
333,000 333,000
50,000 50,000
240,000 240,000
1,167,000 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 5,000
2,765,000 885,000 1,457,000 1,880,000 1,308,000
572,000 572,000
1,457,000 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
20,000 Beg.
90,000 (e)
10,000 (i)
160,000 20,000 (j)
-
 Due to PhilHealth

1,000 Beg.
11,000 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 Post Closing Trial Balance
Debit Credit Debit Credit
30,000
250,000 -
-
120,000
20,000
800,000
680,000
660,000
200,000
90,000
250,000 572,000 655,000
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
1,707,000 1,707,000 1,630,000 1,630,000