Chapter 21 - Advacc Solman Chapter 21 - Advacc Solman

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Chapter 21 - advacc solman
Bachelor of Science in Accountancy (Polytechnic University of the Philippines)
StuDocu is not sponsored or endorsed by any college or university

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CHAPTER 21
MULTIPLE CHOICES - COMPUTATIONAL
21-1 a
21.2 a
21.3 a
21.4 b
21.5 c
21.6 c
21.7 a
21.8 a
21.9 a
21.10 a
21.11 b
21.12 b
21.13 a
21.14 a
21.15 a
21.16 c
The computation of the net sales price is as follows:

List price P100,000
Less: 10% x 100,000 10,000
90,000
Less: 10% x 90,000 9,000
81,000
Less: 5% x 81,000 4,050
Net sales price P 76,950
21.17 b, The computation of the interest income is (P12,000 x 9% x 60/360).
21.18 a
21.19 b
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21.20 b
21.21 d
The computation of the unused NCA is as follows:

NCA received for current year’s appropriation P1,150,000
NCA received for prior year’s accounts payable 25,000
Total NCA 1,175,000
Total payments 1,100,000
Unused NCA P 75,000
21.22 a
21,23 b
21.24 a
21-25 a
The balance of the Accumulated Surplus (Deficit), end is computed as follows:

Accumulated Surplus (Deficit), beginning P 250,000
Add: Revenues
Travel tax 65,000
Immigration tax 125,000
Permit fees 150,000
Registration fees 15,000
Other business income 25,000
Other service income 50,000 431,000
Less: Expenses
Salaries and wages, Regular 165,500
PERA 15,500
Traveling expenses-Local 10,000
Traveling expenses-Foreign 55,000
Office supplies expenses 25,000
Water expenses 11,000
Security expenses 18,000 300,000
Cash-Treasury/Agency Deposit Regular 750,000
Accumulated Surplus (Deficit), End P 131,650
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PROBLEMS
Problem 21-1
1. No journal entry is made. This is posted to the appropriate RAPAl and RAOD
2. Cash-Modified Disbursement System (MDS), Regular 20,000,000

Subsidy from National Government 20,000,000
3. No journal entry is made. The ORS is posted to the appropriate RAOD.
4. Office equipment 3,000,000

Office supplies inventory 200,000
Accounts payable 3,200,000
5. Salaries and wages – Regular 1,000,000

Personal economic relief allowance (PERA) 150,000
Due to BIR 35,000
Due to GSIS 55,000
Due to Pag-ibig 4,000
Due to Philhealth 3,000
Due to Officers and employees 1,053,000
6. Advances for payroll 1,053,000

Cash-Modified Disbursement System (MDS), Regular 1,053,000
7. Due to Officers and employees 1,053,000

Advances for payroll 1,053,000
8. Due to BIR 35,000

Due to GSIS 55,000
Due to Pag-ibig 4,000
Due to PhilHealth 3,000
Cash – Modified Disbursement System (MDS) Regular 97,000
9. Electricity 50,000
Telephone expense 30,000
Janitorial services 20,000
Due to BIR 5,000
Cash – National Treasury – MDS 95,000
10. Accounts payable 1,650,000

Due to BIR 150,000
Cash-Modified Disbursement System (MDS),Regular 1,500,000
11. Cash-Tax Remittance Advice 190,000

Subsidy from National Government 190,000
12. Due to BIR 155,000

Cash-Tax Remittance Advice 155,000
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13. Accounts receivable 90,000

Registration fees 400,000
Permit fees 300,000
Other Service income 200,000
14. Cash-Collecting Officer 400,000

Accounts receivable 400,000
15. Cash-Treasury/Agency Deposit,Regular 400,000

Cash-Collecting Officer 400,000
Problem 21-2
Requirement 1: Journal Entries – Books of Department XYZ (Account Code omitted)
1. No entry.
2. Cash-Modified Disbursement System (MDS), Regular 8,000

3. Office Equipment 1,200

Accounts Payable 1,200
4. Office Supplies Inventory 200

Accounts Payable 200
5. Electricity Expense 800

Telephone Expense 200
Water Expense 100
Security Services 350
Janitorial Services 250
Due to BIR 85
Cash-Modified Disbursement System (MDS),Regular 1,615
6. Advances to Officers and Employees 1,500

7. Salaries and Wages, Regular 550

Personnel Economic Relief Allowances (PERA) 60
Due to BIR 50
Due to GSIS 15
Due to Pag-ibig 10
Due to PhilHealth 5
Due to Officers and Employees 530
8. Advances for Payroll 530

Cash-Modified Disbursement System (MDS),Regular 530
9. Due to Officers and Employees 530
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Advances for Payroll 530

Problem 21-2 - continued
10. Traveling Expenses – Foreign 1,000
Advances to Officers and Employees 1,000
11. a. Cash – Collecting Officer 500

Advances to Officers and Employees 500
b. Cash-Treasury/Agency Deposit, Regular 500

Cash-Collecting Officer 500
12. Accounts Payable 1,100

Due to BIR 500
13. Accounts Receivable 12,000

Other Service Income 5,000
Sales Revenue 7,000
14. Cash – Collecting Officer 900

Accounts Receivable 900
15. Cash-Treasury/Agency Deposit, Regular 750

Cash – Collecting Officer 750
16. Cash – Tax Remittance Advice 635

Subsidy from National Government 635
17. Due to BIR 635

Cash – Tax Remittance Advice 635
18. Due to GSIS 10

Due to Pag-ibig 7
Due to PhilHealth 3
Requirement 2: Adjusting Entries:
a. Office Supplies Expense 160

Office Supplies Inventory 160
b. Depreciation – Machinery and Equipment 120

Accumulated Depreciation-Office Equipment 120
c. Subsidiary from National Government 3,735

NCA Received 8,000
Payments 4,265
Unused NCA 3,735
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Problem 21-2 – continued
Requirement 3 - Pre-Closing Trial Balance (Account Code Omitted)
A/C Code Debit Credit

Cash – Collecting Officer 150
Cash-Treasury/Agency Deposit, Regular 1,250
Accounts Receivable 11,100
Office Equipment 1,200
Accumulated Depreciation – Office Equipment 120
Office Supplies Inventory 40
Accounts Payablew 300
Due to GSIS 5
Due to Pagibig 3
Due to PhilHelth 2
Other Service Income 5,000
Sales Revenue 7,000
Salaries and Wages, Regular 550
Traveling Expense – Foreign 1,000
Office Supplies Expense 160
Water Expense 100
Electricity Expense 800
Depreciation – Machinery and Equipment 120
17,330 17,330
Requirement 4 – Closing Entries
a. Other Service Income 5,000

Sales Revenue 7,000
Revenue and Expense Summary 12,000
To close income accounts
b. Revenue and Expense Summary 3,590

Personnel Economic Relief Allowance (PERA) 60
Traveling Expenses – Foreign 1,000
Water Expense 100
Electricity Expense 800
Depreciation – Machinery and Equipment 120
To Close expense accounts.
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Problem 21-2: Continued
c. Subsidy from National Government 4,900

To close subsidy account.
d. Revenue and Expense Summary 13,310

Accumulated Surplus (Deficit) 13,310
To close Revenue and expense Summary account.
e. Accumulated Surplus (Deficit) 1,250

Cash-Treasury/Agency Deposit, Regulary 1,250
To close cash deposit account.
Problem 21-3
A. Construction undertaken by contractor:
1. No Entry
2. Cash-Collecting Officer 600

Guaranty/Security Deposit Payable 600
3. Cash-Treasury/Agency Deposit, Trust 600

4. Advances to Contractor 240

5. Construction in Progress-Building & Other Structures 400

Advances to Contractor 120
50% x 800 400

Less: Advances to Contractor (50% x 240) 120
Net 280
6. Accounts Payable 400

Cash-Modified Disbursement System (MDS), Regular 238
Due to BIR 14
7. Construction in Progress-Building and other Structures 400

Advances to Contractor 120
50% x 800 400

Less: Advances to Contractor 120
Net 280
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Problem 21-3 – Continued
8. Accounts Payable 280

Due to BIR 14
9. Cash-Tax Remittance Advice 28

Subsidy from National Government 28
Due to BIR 28
Cash-Tax Remittance Advice 28
10. Building 800

Construction in Progress-Building and Other Structures 800
11. Guaranty/Security Deposit Payable 600

12. Guaranty/Security Deposit Payable 56

B. Construction (Repair) by Administration:
1. Construction Materials Inventory 500,000


Due to BIR 50,000
Cash-Modified Disbursement System (MDS), Regular 450,000

Due to BIR 50,000

4. Construction in Progress – Building and Other Structures 500,000

Construction Materials Inventory 500,000
5. Construction in Progress – Building and Other Structures 95,000

6. Advances to Special Disbursing Officer 80,000

Cash-Modified Disbursement System (MDS), Regular 80,000

Advances to Special Disbursing Officer 80,000
Due to BIR 15,000
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Due to BIR 15,000

9. Other Infrastructure Assets 595,000

Construction in Progress – Building and Other Structures 595,000
Problem 21-4
A. Books of Entity X – Central Office:
Subsidy to Regional Office/Staff Bureaus 65,000

Accumulated Depreciation-Information and Communication
Technology Equipment 15,000
Information and Communications Technology Equipment 80,000
Books of Regional Office (RO) No. 1:

Accumulated Depreciation-Information and Communication
Subsidiary from Central Office.
B. Books of Entity X – Central Office:
Accumulated Surplus/(deficit) 65,000

Accumulated Depreciation-Information and Communications
Books of Entity X – RO No. 1

Technology Equipmento 15,000
Accumulated Surplus/(Deficit) 65,000
c. Books of Entity X (Transferor)
Accumulated Surplus-(Deficit) 65,000

Books of Entity Y – Recipient

Accumulated Surplus-(Deficit) 65,000
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Problem 21-5
1. Closing Entries
a. Permit Fees 120

Registration Fees 110
Examination Fees 140
Other Business Income 350
Other Service Income 900
b. Revenue and Expense Summary 660

Traveling Expenses – Local 25
Office Supplies Expenses 70
Water Expenses 15
Electricity Expenses 60
Telephone Expenses 20
Depreciation-Building and Other Structures 15
Depreciation-Office Equipment 10
c. Subsidy from National Government 1505

d. Revenue and Expense Summary 2,465

e. Accumulated Surplus (Deficit) 1,200

Cash-Treasury Agency Deposit-Regular 1,200
2. Agency DEF
Statement of Financial Position
December 31, 2017
ASSETS
Current Assets
Petty Cash Fund 150
Accounts Receivable 120
Less: Allowance for Impairment – AR 20 100
Office Supplies Inventory 30 480
Non-Current Assets
Building 650
Less: Accumulated Depreciation 50 600
Office Equipment 550
Less: Accumulated Depreciation 60 490 1,090
Total Assets 1,570
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Problem 21-5 – Continued
LIABILITIES
Due to GSIS 75
Due to Pag-ibig 25
Due to PhilHealth 20
Total Liabilities 305
Total Assets less Total Liabilities 1,265
NET ASSETS/EQUITY
3. Agency DEF
Statement of Financial Performance
Year Ended December 31, 2017
Revenue:
Permit Fees 120
Registration Fees 110
Examination Fees 140
Other Business Income 350
Other Service Income 900
Total Revenue 1,620
Less: Current Operating Expenses:

Traveling Expenses – Local 25
Water Expenses 15
Electricity Expenses 60
Telephone Expenses 20
Depreciation-Building and other Structures 15
Depreciation-Office Equipment 10
Total Current Operating Expenses 660

Surplus (Deficit) from Current Operation 960
Surplus (Deficit) from Current Operations 2,465

Less: Subsidy to NGAs (for BTr only) 1,200
Surplus (Deficit) for the period 1,265
128

Chapter 21 - Advacc Solman Chapter 21 - Advacc Solman

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lOMoARcPSD|9226101

Chapter 21 - advacc solman

Bachelor of Science in Accountancy (Polytechnic University of the Philippines)

StuDocu is not sponsored or endorsed by any college or university

MULTIPLE CHOICES - COMPUTATIONAL

The computation of the net sales price is as follows:

21.17 b, The computation of the interest income is (P12,000 x 9% x 60/360).

Downloaded by Drew Banluta (drewbanluta@gmail.com)

The computation of the unused NCA is as follows:

The balance of the Accumulated Surplus (Deficit), end is computed as follows:

Downloaded by Drew Banluta (drewbanluta@gmail.com)

2. Cash-Modified Disbursement System (MDS), Regular 20,000,000

3. No journal entry is made. The ORS is posted to the appropriate RAOD.

4. Office equipment 3,000,000

5. Salaries and wages – Regular 1,000,000

6. Advances for payroll 1,053,000

7. Due to Officers and employees 1,053,000

8. Due to BIR 35,000

Cash – Modified Disbursement System (MDS) Regular 97,000

10. Accounts payable 1,650,000

11. Cash-Tax Remittance Advice 190,000

12. Due to BIR 155,000

Downloaded by Drew Banluta (drewbanluta@gmail.com)

13. Accounts receivable 90,000

14. Cash-Collecting Officer 400,000

15. Cash-Treasury/Agency Deposit,Regular 400,000

Requirement 1: Journal Entries – Books of Department XYZ (Account Code omitted)

2. Cash-Modified Disbursement System (MDS), Regular 8,000

3. Office Equipment 1,200

4. Office Supplies Inventory 200

5. Electricity Expense 800

6. Advances to Officers and Employees 1,500

7. Salaries and Wages, Regular 550

8. Advances for Payroll 530

9. Due to Officers and Employees 530

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Advances for Payroll 530

11. a. Cash – Collecting Officer 500

b. Cash-Treasury/Agency Deposit, Regular 500

12. Accounts Payable 1,100

13. Accounts Receivable 12,000

14. Cash – Collecting Officer 900

15. Cash-Treasury/Agency Deposit, Regular 750

16. Cash – Tax Remittance Advice 635

17. Due to BIR 635

18. Due to GSIS 10

Requirement 2: Adjusting Entries:

a. Office Supplies Expense 160

b. Depreciation – Machinery and Equipment 120

c. Subsidiary from National Government 3,735

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Problem 21-2 – continued

Requirement 3 - Pre-Closing Trial Balance (Account Code Omitted)

A/C Code Debit Credit

Requirement 4 – Closing Entries

a. Other Service Income 5,000

b. Revenue and Expense Summary 3,590

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Problem 21-2: Continued

c. Subsidy from National Government 4,900

d. Revenue and Expense Summary 13,310

e. Accumulated Surplus (Deficit) 1,250

A. Construction undertaken by contractor: