L-NU AA-23-02-01-18

Place your handwritten answer on a piece of paper. Scan or capture your output in portrait. Attach the
file prior to submission.

Instruction: Record the following transactions or events. If no journal entry is needed, state the registry
or other document where the transaction or event is recorded. If a journal entry is needed, just provide
the journal entry.

Problem

Entity A is a newly formed government agency. Entity A's transactions and events during the calendar
year 20x1 are as follows:

a. Received appropriation of P500,000.

b. Received allotment of P450,000.
c. Incurred obligations amounting to P440,000.
d. Received Notice of Cash Allocation of P430,000.
e. Accrued P80,000 salaries through granting, and liquidation, of cash advance. The breakdown of the
salaries is as follows:
 Salaries and Wages P70,000
 Personal Economic Relief Allowance P10,000
 Withholding Tax P18,000
 GSIS P4,000
 Pag-IBIG P1,000
 PhilHealth P2,000.
f. Received delivery of purchased office equipment worth P200,000. The equipment has an estimated
useful life of 5 years and a 5% residual value. Entity A recognizes monthly depreciation every end of
the month using the straight-line method. The equipment is acquired on January 1, 20x1.
g. Paid the accounts payable from the purchase of equipment in (f) above. Taxes withheld amount to
P12,000.
h. Received delivery of purchased office supplies worth P100,000. The office supplies were purchased
through check. Taxes withheld amount to P5,000.
i. Issued office supplies worth P90,000 end users.
j. Granted P20,000 cash advance to an employee for travelling expenses on an official local travel. The
employee liquidated P17,000 and remitted the cash advance.
k. Collected unbilled service income for Permit Fees of P40,000 and remitted P30,000 of the total
collection.
l. Paid water and electricity expenses amounting to P5,000 and P10,000, respectively. Taxes withheld
amount to P2,000.
m. Remitted the taxes withheld to the BIR.
n. Remitted contributions to GSIS, PhilHealth, and Pag-IBIG.

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