Problem 1.

Basic Recording Drills

Instruction: Record the following transactions or events in your activity notebook. 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.

a. Receipt of notice of appropriation amounting to P1 million

b. Receipt of allotment from the DBM amounting to P980,000
c. Incurrence of Obligation amounting to P880,000.
d. Receipt of Notice of Cash Allocation amounting to P850,000.00
e. Accrual of P500,000 salaries upon approval of payroll. The breakdown is as follows:

Salaries and Wages 450,000.00

PERA 50,000.00
Gross Compensation 500,000.00

Withholding Tax 125,000.00

GSIS 25,000.00
Pag-Ibig 20,000.00
Philhealth 12,000.00
Total Salary Deductions 182,000.00

f. Granting of cash advance for the payroll.

g. Liquidation of the cash advance for payroll.
h. Receipt of delivery of purchased office supplies worth P200,000 form the current year’s
obligation.
i. Payment of P180,000 accounts payable. Taxes withheld amount to P10,000
j. Remittance of all taxes withheld to the BIR.
k. Remittance of other amounts withheld to the other government agencies concerned.
l. Billing of revenue for Power supply system fees amounting to P200,000
m. Collection of P200,000 from billed revenue and remittance of the total collections to the
National Treasury.
n. Reversion of unused NCA
o. How much is reported as unreleased appropriation in the entity’s Budget accountability report?
p. How much is reported as unobligated allotment in the entity’s Budget Accountability Report?
q. How much is reported as Not yet Due and Demandable Obligations in the entity’s Budget
Accountability Report?

Problem 3-7:worksheet Preparation

Entity B is a newly formed government agency. Entity B’s transactions and events during the
Calendar year 20x1are as follows:
 a. Received appropriation of P500,000.00
b. Received allotment of P450,000.00
c. Incurred Obligations amounting to P440,000.00
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 70,000.00

PERA 10,000.00
Gross Compensation 80,000.00

Withholding Tax 18,000.00

GSIS 4,000.00
Pag-Ibig 1,000.00
Philhealth 2,000.00
Total Salary Deductions 25,000.00

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 a 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 P12,000.00
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 to 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 excess cash advance.
k. Collected unbilled service income for permit fees of P40,000 and remitted P30,000 of the
total collections
l. Paid water and electricity expenses amounting to P5,000 and P10,000 respectively. Taxes
ithheld ammoun to P2,000
m. Remitted the taxes withheld to the BIR
n. Remitted contricutions to GSIS, Philhealth and Pag-Ibig.

Requirements:

a. record the transactions and events above.If no journal entry is needed, state the registry or othe
documents where the transaction or event is recorded.
b. Post the transactons in the Ledger. Use t-Accounts.
c.Prepare the unadjusted trial balance.
d.prepare the adjustments, if any.
e.prepare a complete woeksheet shpwing columns for post-closing trial balance.
f.prepare the closing entries.