Shaniah Racelle D.

Florentin
BSA-3B
Government Accounting (Chapter 13 and 14)
CHAPTER 13
PROBLEM 13-1: TRUE OR FALSE
1. True
2. False
3. False
4. False
5. False
6. False
7. False
8. True
9. True
10. False

PROBLEM 13-2: MULTIPLE CHOICE

1. c
2. a
3. d
4. a
5. d
6. b
7. a
8. c
9. a
10. d
PROBLEM 13-3: FOR CLASSROOM DISCUSSION
1. a
2. c
3. b
4. a
5. b
6. b
7. a
8. a
9. d
10. d

CHAPTER 14
PROBLEM 14-1: TRUE OR FALSE
1. True
2. True
3. True
4. False
5. False
6. False
7. False
8. True
9. False
10. True

PROBLEM 14-2: MULTIPLE CHOICE

1. b
2. d
3. b
4. a
5. c
6. a
7. b
8. d
9. a
10. c
PROBLEM 14-3: FINANCIAL STATEMENT PRESENTATION
Requirement (a): Comparative Statement of financial position
ENTITY A
STATEMENT OF FINANCIAL POSITION
(REGULAR AGENCY FUND)
AS AT DECEMBER 31, 20X2
20X2 20X1
ASSETS
Current Assets
Cash and Cash Equivalents 30,000 30,000
Receivables 1.) 115,000 80,000
Inventories 20,000 -
Total Current Assets 165,000 110,000

Noncurrent Assets
Property, Plant and Equipment 2.) 580,000 310,000
Total Noncurrent Assets 580,000 310,000

TOTAL ASSETS 745,000 420,000

LIABILITIES
Current Liabilities
Financial Liabilities 3.) 90,000 60,000
Inter-Agency Payables - 27,000
Total Current Liabilities 90,000 87,000

TOTAL LIABILITIES 90,000 87,000

TOTAL ASSETS less TOTAL LIABILITIES 655,000 333,000

NET ASSETS/ EQUITY 655,000 333,000

Accumulated Surplus/(Deficit) 0 0

TOTAL NET ASSETS/EQUITY 655,000 333,000

Requirement (b): Comparative Statement of financial performance
ENTITY A
STATEMENT OF FINANCIAL PERFORMANCE
(REGULAR AGENCY FUND)
AS AT DECEMBER 31, 20X2
20X2 20X1
REVENUE
Tax revenue 50,000 40,000
Service and Business Income 240,000 192,000
TOTAL REVENUE 290,000 232,000

Less: CURRENT OPERATING EXPENSES

Personnel Services 4.) 400,000 319,000
Maintenance and Other Operating Expenses 5.) 430,000 344,000
Non-cash Expenses 6.) 55,000 40,000
TOTAL CURRENT OPERATING EXPENSES 885,000 703,000

SURPLUS/ (DEFICIT) FROM CURRENT (595,000) (471,000)

OPEARTIONS

Net Financial Assistance/ Subsidy 1,167,000 934,000

SURPLUS/ (DEFICIT) FOR THE PERIOD 572,000 463,000

Requirement (c): Comparative Statement of changes in equity

ENTITY A
STATEMENT OF CHANGES IN NET ASSETS/EQUITY
(REGULAR AGENCY FUND)
AS AT DECEMBER 31, 20X2
Accumulated Surplus/
(Deficit)
20x2 20x1
Balance at January 1 333,000 160,000
Add/ (Deduct):
Changes in Net Assets/ Equity for the Calendar Year
Surplus/ (Deficit) for the periof 572,000 463,000
Adjustment of net revenue recognized directly in net assets/ equity (250,000) (290,000)
Balance at December 31 655,000 333,000
Requirement (d): Statement of cash flows
ENTITY A
STATEMENT OF CASH FLOWS
(REGULAR AGENCY FUND)
FOR THE YEAR ENDED DECEMBER 31, 20X2
Cash Flows from Operating Activities
Receipt of Notice of Cash Allocation 1,050,000
Collection of Income/Revenues 50,000
Collection of receivables 200,000
Total cash inflows 1,300,000

Remittance to National Treasury (250,000)

Payment of Personnel Services (250,000)
Payment for Maintenance & Other Operating Expenses (280,000)
Purchases of Inventories (110,000)
Remittance of Personnel Benefit Contributions and Mandatory (67,000)
Deductions
Reversion of unused NCA (43,000)

Total cash outflows (1,000,000)

Net Cash Provided by (Used in) Operating Activities 300,000

Cash Flows from Investing Activities

Purchase of Office Equipment (300,000)
Net Cash Provided by (Used in) Operating Activities (300,000)

Cash Flows from Financing Activities -

Increase (Decrease) in Cash and Cash Equivalents -
Cash and Cash Equivalents, Jan. 1 30,000
Cash and Cash Equivalents, Dec. 31 30,000

Computations for Statement of cash flows:

Collection of receivables: Payment for Personnel Services:
Accounts receivable Personnel Services 400,000
Dec. 31, 80,000 Less: Withholding taxes (90,000)
20x1
Waterworks 240,000 200,000 Salary deductions for GSIS, (60,000)
System Fees Collections PhilHealth & Pag-IBIG
Dec. 31,20x2 120,000 Payment for Personnel 250,000
Services

Purchases of Inventories: Payment for Maintenance & Other

Operating Expenses (other than purchases
of inventories)
Office Supplies Inventory Water Expenses 20,000
Purchases 150,000 130,000 Office Electricity Expenses 60,000
of Supplies
inventory Expense
20,000 Dec. 31, Telephone Expenses 40,000
20x2
Janitorial Expenses 80,000
Security Expenses 100,000
Accounts Payable Total 300,000
60,000
Dec. 31, Less: Withholding taxes (20,000)
20x1
Payments 120,000 150,000 Purchases Net cash payment 280,000
of
accounts
payable
Dec. 31, 90,000
20x2

Payments of accounts payable 120,000

Less: Withholding taxes (10,000)
Cash outflow on Purchases of 110,000
Inventories

Remittance of Personnel Benefit Contributions and Mandatory Deductions

Due to GSIS, PhilHealth & Pag-IBIG
7,000 Dec. 31, 20x1
Amount remitted 67,000 60,000 Salary deductions in
20x2
Dec. 31, 20x2 -
 Purchase of Office Equipment

Office Equipment

Dec. 31, 20x1 340,000

Purchases of equipment 320,000 -
660,000 Dec. 31,20x2

Purchases of equipment 320,000

Less: Withholding taxes (20,000)
Cash outflow on Purchases of Equipment 300,000

Notes toRequirement
the financial(f): Partial
Requirement (f): Partial Notes to the financial statements
Requirement (e):
Note 1: Receivable
This account consists of the following: 20x2 20x1
Accounts Receivable 120,000 80,000
Allowance for Impairment - A/R (5,000) -
Net 115,000 80,000

Note 2: Property, Plant and Equipment

This account consists of the following:
Buildings 800,000 800,000
Office Equipment 660,000 340,000
Total Cost 1,460,000 1,140,000

Accumulated Depreciation - Buildings 680,000 650,000

Accumulated Depreciation - Equipment 200,000 180,000
Total Accumulated Depreciation 880,000 830,000

Property, Plant and Equipment, net 580,000 310,000

Note 3: Inter-agency Payables

This account consists of the following:
Due to BIR - 20,000
Due to GSIS - 4,000
Due to Pag-IBIG - 2,000
Due to PhilHealth - 1,000
 Inter-agency Payables - 27,000

Note 4: Personnel Services

This account consists of the following:
Salaries and Wages, Regular 380,000 303,000
PERA 20,000 16,000

Personnel Services 400,000 319,000

Note 5: Maintenance and Other Operating Expenses

This account consists of the following:
Office Supplies Expense 130,000 104,000
Water Expenses 20,000 16,000
Electricity Expenses 60,000 48,000
Telephone Expenses 40,000 32,000
Janitorial Expenses 80,000 64,000
Security Expenses 100,000 80,000
Maintenance and Other Operating Expenses 430,000 344,000

Note 6: Non-cash Expenses

This account consists of the following:
Depreciation-Buildings & Other Structures 30,000 24,000
Depreciation-Machinery and Equipment 20,000 16,000
Impairment Loss – Loans and Receivables 5,000 -

Non-cash Expenses 55,000 40,000

PROBLEM 14-4: FOR CLASSROOM DISCUSSION

1. b
2. d
3. d
4. c
5. b
6. d
7. c
8. c
9. b
10. d