ACCO 30033 -LOCAL GOVERNMENT UNITS

Problem 1.
A municipality of the province of Cavite had the following transactions for the month of January 2020:
a. Recorded the estimated receivables on real property tax, P50M and special education tax, P50M.
b. Collected receivables on real property tax, P2M and special education tax, P2M.
Garbage fees collected, P100,000.
c. Distributed real property tax:
Municipality-40% Province-35% Barangay-25%
d. Distributed Special Education Tax:
50% for provincial share; 50 % for municipality
e. Deposited total collections from real property taxpayers.
f. Remitted the share due to province and barangays for real property tax collected.
g. Remitted the share due to province for special education tax collected.
h. Received the following operating and service income:
Garbage fees P300,000
Receipts from Market Operations 200,000
Hospitals Fees 100,000
Receipts from Cemetery Operations 50,000
Receipts from Slaughterhouse Operations 50,000
i. Deposited all receipts and collections of operating and service income.
j. Received the Notice of Funding Check Issued from the DBM for Internal Revenue Allotment. P100M.
k. Received the bank credit memo for IRA.
l. Established Petty Cash for P50,000.
m. Purchased office supplies on account, P112,000.
n. Paid the accounts payable on office supplies, net of tax.
o. Remitted the tax due to the BIR.