Note: Figures indicated below are notional amounts only.

Facts ER share Total

Basic pay 25,000.00 25,000.00
SSS contributions 581.30 1,175.70 1,757.00
PHIC contributions 343.75 343.75 687.50
HDMF contributions 100.00 100.00 200.00
Withholding tax 800.00 800.00
Net pay 23,174.95 1,619.45

Entry to record payment of salaries and wages

Debit
Salaries and wages 25,000.00
SSS contributions 1,175.70
PHIC contributions 343.75
HDMF contributions 100.00
SSS payable
PHIC payable
HDMF payable
Withholding tax payable
Cash in bank - BDO

Entry to record payment of government contributions

SSS payable 1,757.00
PHIC payable 687.50
HDMF payable 200.00
Cash in bank - BDO

Entry to record payment of withholding tax on compensation

Withholding tax payable 800.00
Cash in bank - BDO

Facts
Selling price 10,000.00
VAT 1,200.00
Total 11,200.00

Entry to record cash sale

Cash in bank - BDO 11,200.00
Sales
Output tax

Entry to record sales on account

Accounts receivable 11,200.00
Sales
Output tax
Entry to record cash collection
Cash in bank - BDO 11,200.00
Accounts receivable

Facts
Meralco billing 15,000.00
VAT 1,800.00
Total 16,800.00

Entry to record payment of utilities

Utilities 15,000.00
Input vat 1,800.00
Cash in bank - BDO

Facts
Petty cash fund 10,000.00
Cash in bank - BDO 90,000.00
Cash in bank - BPI 100,000.00

Entry to set up of petty cash fund

Petty cash fund 10,000.00
Cash in bank - BDO

Petty cash replenishment

Office supplies 2,000.00
Gasoline 1,000.00
Input vat 360.00
Transportation 3,640.00

Entry to record petty cash replenishment

Office supplies 2,000.00
Gasoline 1,000.00
Input vat 360.00
Transportation 3,640.00
Cash in bank - BDO

Facts
Monthly rent 10,000.00
Vat 1,200.00
Total 11,200.00
5% Expanded withholding tax 500.00
Net due 10,700.00

Entry to record payment of monthly rent

(Lessor is a Vat registered Taxpayer)
Rental 10,000.00
Input vat 1,200.00
Expanded withholding tax payable
Cash in bank - BDO

(Lessor is a NonVat registered Taxpayer)

Rental 10,000.00
Expanded withholding tax payable
Cash in bank - BDO

Entry to record payment of expanded withholding tax

Expanded withholding tax payable 500.00
Cash in bank - BDO

Facts
Employees' approval of cash advance 10,000.00

Upon of liquidation, (with excess unspent amount of cash advance)

Representation 2,000.00
Meals 1,000.00
Transportation 500.00
Office supplies 600.00

Entry to record release of cash advance

Cash advance for liquidation 10,000.00
Cash in bank - BDO

Entry to record liquidation of cash advance

Cash in bank - BDO 5,900.00
Representation 2,000.00
Meals 1,000.00
Transportation 500.00
Office supplies 600.00
Cash advance for liquidation

Upon of liquidation, (with reimbursement of expenses)

Representation 8,000.00
Meals 1,000.00
Transportation 500.00
Office supplies 600.00

Entry to record additional reimbursement of expenses

Representation 8,000.00
Meals 1,000.00
Transportation 500.00
Office supplies 600.00
Cash advance for liquidation
Cash in bank - BDO
Facts
Acquisition of equipment
Office equipment 1,000,000.00
Vat 120,000.00
Total 1,120,000.00

Entry to record acquisition of office equipment

Office equipment 1,000,000.00
Input vat 120,000.00
Cash in bank - BDO

Facts:
Depreciation method
Straight line method Cost-salvage value
estimated useful life

1,000,000.00
5.00

Monthly depreciation 16,666.67

Entry to record depreciation

Depreciation expense 16,666.67
Accumulated depreciation

Facts
Disposal of equipment on the 3rd year
1st year 2nd year 3rd year
Cost 1,000,000.00 1,000,000.00 1,000,000.00
Accumulated depreciation 200,000.00 400,000.00 600,000.00
Book values 800,000.00 600,000.00 400,000.00

Entry to record the disposal of equipment

Loss on disposal of asset 400,000.00
Accumulated depreciation 600,000.00
Office equipment

Facts (sale of equipment at the end of 3rd year)

Selling price 600,000.00
Book value 400,000.00
Gain on sale of equipment 200,000.00

Entry to record sale of equipment at the end of 3rd year (with a selling price of P600,000)
Cash in bank - BDO 600,000.00
Accumulated depreciation 600,000.00
Office equipment
Gain on sale of equipment
Facts (sale of equipment at the end of 3rd year at a loss)
Selling price 300,000.00
Book value 400,000.00
Loss on sale of equipment (100,000.00)

Entry to record sale of equipment at the end of 3rd year (with a selling price of P300,000)
Cash in bank - BDO 300,000.00
Loss on sale of equipment 100,000.00
Accumulated depreciation 600,000.00
Office equipment

Facts
Availment of loan
Loans payable 100,000.00
Monthly amortization Principal 10,000.00
Interest 5,000.00
15,000.00

Entry to record proceeds of loan

Cash in bank - BDO 100,000.00
Loans payable

Entry to record payment of monthly amortization

Loans payable 10,000.00
Interest expense 5,000.00
Cash in bank - BDO

Facts
Payment of advance rent
Rent - January 12,500.00
Rent - February 12,500.00
Total cash payment during January 25,000.00

Entry to record advance payment of rent (for January FS)

Rental 12,500.00
Prepaid rent 12,500.00
Cash in bank - BDO

Entry to recognize rent for February (for February FS)

Rental 12,500.00
Prepaid rent

Facts
Meralco billing for January 10,000.00
Due on February 15

Entry to record accrual of utilities for January

Utilities 10,000.00
Accrued expenses
Credit

1,757.00
687.50
200.00
800.00
23,174.95

2,644.50

800.00

10,000.00
1,200.00

10,000.00
1,200.00
11,200.00

16,800.00

10,000.00

7,000.00
 500.00
10,700.00

500.00
9,500.00

500.00

10,000.00

10,000.00

10,000.00
100.00
 1,120,000.00

16,666.67

1,000,000.00

ce of P600,000)

1,000,000.00
200,000.00
ce of P300,000)

1,000,000.00

100,000.00

15,000.00

25,000.00

12,500.00
10,000.00