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Advanced Financial Accounting and Reporting 14 - NGAS: Straight Problems Problem 1
Advanced Financial Accounting and Reporting 14 - NGAS: Straight Problems Problem 1
14 – NGAS
STRAIGHT PROBLEMS
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Various operating 2. Prepare a post-closing trial balance for year ended
expenses 970,000 2020.
Bank service charges 33,500 3. Prepare a Statement of Revenues and Expenses and
Totals P4,302,000 P4,302,000 a Statement of Financial Position for 2020
Required:
1. Prepare closing entries at year-end.
MULTIPLE CHOICE
2. What is the appropriate entry to record receipt of NCA Items 5-7 relates to the following:
from the DBM? Agency A is a National Government with an NCA from
a. Cash in Bank the DBM for MOOE amounting to P5,500,000. Of the
Current Account 111 5,000,000 total amount, P4,675,000 was obligated and 80% was
Subsidy Income paid. The remaining 20% was recognized as accounts
from National payable.
Government 651 5,000,000 5. How much is the un-obligated balance that should be
b. Cash National shown in the Registry of Allotment and Obligation-
Treasury – MDS 108 5,000,000 MOOE?
Government
Equity 501 5,000,000 a. P825,000 c. P1,760,000
c. Cash National b. P935,000 d. P110,000
Treasury - MDS 108 5,000,000
Subsidy 6. How much is the utilization rate of obligation?
Income from a. 80% c. 85%
National b. 20% d. 38%
Government 651 5,000,000
7. What entry should be prepared to record the unutilized
d. Subsidy Income
subsidy income from national government?
from National
a. Subsidy Income from
Government 651 5,000,000
National Government 651 935,000
Government
Cash National
Equity 501 5,000,000
Treasury – MDS 108 935,000
b. Subsidy Income from
National Government 651 825,000
3. What is the appropriate entry to record the issuance of
Cash National
check for payment of payroll with net amount of
Treasury – MDS 108 825,000
P600,000 received by the disbursing officer?
c. Subsidy Income from
a. Salaries and Wages-
National Government 651 110,000
Regular 701 680,000
Cash National
Due to BIR 412 45,000
Treasury – MDS 108 110,000
Due to GSIS 413 30,000
d. Subsidy Income from
Due to Philhealth 415 5,000
National Government 651 825,000
Due to Officers and
Government Equity 501 825,000
employees 403 600,000
b. Salaries and Wages- 8. What is the appropriate entry to record remittance of
Regular 701 680,000 withholding taxes deducted from salaries of
Due to BIR 412 45,000 government employees through TRA’s?
Due to GSIS 413 30,000
Due to Philhealth 415 5,000 a. Due to BIR 412 120,000
Cash-National Cash National
Treasury-MDS 108 600,000 Treasury – MDS 108 120,000
c. Cash Disbursing Officer 103 600,000 b. Due to BIR 412 120,000
Cash National Subsidy Income
Treasury-MDS 108 600,000 from National
d. Cash Disbursing Officer 103 600,000 Government 120,000
Due to officers and c. Due to BIR 412 120,000
employees 403 600,000 Due to officers and
Employees 403 120,000
4. Which of the following is not a closing entry? d. Due to BIR 108 120,000
a. Subsidy Income Cash In Bank –
from National Current Account 111 120,000
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Items 9-10 relate to the following: b. Subsidy to National
X, a national government agency, established a petty Government 100,000
cash fund of P20,000. During the month, P12,000 of Cash National Treasury –
the petty cash liquidated but was not replenished. The MDS 100,000
total amount liquidated pertains to the following: c. Subsidy to Operating units 100,000
Gas and oil P8,000 Cash National Treasury –
Office supplies 4,000 MDS 100,000
d. Subsidy to Operating unit 100,000
Of the P4,000 office supplies, P1,500 is on hand at the Subsidy from National
end of the month. Government 100,000
9. How much should be reported as petty cash at the end
of the month assuming that a financial report is to be
prepared? 13. Mario is an employee of a national government
a. P20,000 c. P12,000 agency. Mario was granted and received a cash
b. P 8,000 d. P 1,500 advance of P30,000 for official travel. Mario liquidated
the cash advance as follows:
10. What is the appropriate entry to record the liquidation Travel expenses P10,000
of the petty cash fund? Training expenses 10,000
a. Gas and oil 8,000 Representation expenses 8,000
Office supplies expense 4,000 Total P28,000
Petty cash fund 12,000
b. Gas and oil 8,000 The amount advanced had an un-liquidated balance of
Office supplies expense 4,000 P2,000. What is the appropriate entry to record the
Cash in bank 12,000 liquidation of the cash advance?
c. Gas and oil 8,000 a. Travel expenses 10,000
Office supplies inventory 1,500 Training expenses 10,000
Office supplies expense 2,500 Representation expenses 8,000
Cash in bank 12,000 Cash Disbursing Officer 28,000
d. Gas and oil 8,000 b. Travel expenses 10,000
Office supplies inventory 1,500 Training expenses 10,000
Office supplies expense 2,500 Representation expenses 8,000
Petty cash fund 12,000 Due from officers and
Employees 2,000
11. M is the cashier of DILT a national government. During Cash Disbursing Officer 30,000
the month, she received total collections from c. Travel expenses 10,000
earnings amounting to P250,000 of which P150,000 Training expenses 10,000
was income that should be deposited to the National Representation expenses 8,000
Government and the P100,000 was income received Due from officers and
from its own agency operation. The P 150,000 was Employees 2,000
deposited to the National Treasury and the remaining Cash National Treasury 30,000
balance was deposited to the agency’s bank account. d. Travel expenses 10,000
What should be the entry to record the deposit of the Training expenses 10,000
collections received by the collecting officer? Representation expenses 8,000
a. Cash National Treasury 108 150,000 Cash Collecting Officer 2,000
Cash in Bank Current Due from officers and
Account 111 100,000 Employees 30,000
Cash Collecting
Officer 102 250,000
14. What is the appropriate entry to record cash overage?
b. Due to National
a. A cash overage is returned to the cashier and not
Treasury 108 150,000
recorded.
Cash in Bank Current
b. A cash overage is debited to Cash and credited to
Account 111 100,000
Miscellaneous Income.
Cash Collecting
c. A cash overage is not recorded and should be
Officer 102 250,000
distributed to all employees equally.
c. Due to National
Treasury 108 150,000 d. A cash overage is debited to Accounts
Cash In Bank Current receivable and credited to Cash.
Account 111 100,000 GHI, a national government agency unit incurs an
Income 250,000 obligation for the purchase of garbage truck for P450,000
d. Cash National Treasury 108 150,000 on March 15, 2016. The dump truck is to be delivered on
Cash In Bank Current March 31, 2016 and the motor firm has agreed for a 30-
Account 111 100,000 day, interest free-delayed payment, i.e. payable on April
Income 250,000 30, 2016 Assume a 12% tax on the purchase covered by
12. W, a national government agency received cash TRA:
allotment from its head agency totaling P1,000,000. 15. On March 15, 2016, the entry to be recorded by GHI
Of the total amount received, W distributed P100,000 will be:
to one of its operating units as subsidy. What entry a. Equipment 450,000
should be prepared to record the distribution of the Accounts payable 450,000
subsidy to W, operating units?
a. Subsidy from National b. Equipment 450,000
Government 100,000 Accounts payable 396,000
Cash National Treasury – Subsidy income from NG 54,000
MDS 100,000
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c. Equipment 450,000 Due to BIR 54,000
Accounts payable 396,000 Cash – NT – MDS 450,000
Due to BIR 54,000 c. Accounts payable 450,000
Cash – NT – MDS 396,000
d. Memorandum entry in RAOCO Due to BIR 54,000
d. Accounts payable 396,000
Due to BIR 54,000
Cash – NT – MDS 396,000
16. On March 31, 2016, the entry to be recorded by GHI Subsidy income from NG 54,000
will be:
a. Equipment 450,000 18. The entry by GHI to record to subsequent disposal of
Accounts payable 450,000 the withheld tax will be:
a. Due to BIR 54,000
b. Equipment 450,000 Cash – NT – MDS 54,000
Accounts payable 396,000 b. Due to BIR 54,000
Subsidy income from NG 54,000 Withholding tax payable 54,000
c. Equipment 450,000 c. Due to BIR 54,000
Accounts payable 396,000 Subsidy income from NG 54,000
Due to BIR 54,000 d. Memorandum entry in RAOFE
Problem 1.
1. APPROVAL OF ANNUAL BUDGET (APPROPRIATION) Due from Officers 3,000
and employees
*DBM enters in RAPAL, P4,740,000. * Liquidation of cash
*COA prepares spreadsheets on appropriations. advance
• Agency prepares a journal entry
2. APPROVAL OF AGENCY’S BUDGET MATRIX (ALLOTMENT) Traveling expenses 37,000
Due from Officers
*DBM enters in RAPAL and in RANCA, P4,285,000. and employees 37,000
*Agency enters in RALOBS, as follows • Deposit of collection
• Agency prepares a journal entry
a. RAOCO for capital outlay P1,100,000 Subsidy income from NG 3,000
b. RAOMO for M & O expenses 1,350,000 Cash –Collecting Officer 3,000
c. RAOPS for personal services 1,800,000
d. RAOFE for financial expenses 35,000 5. INCURRED OBLIGATION FOR ACQUISITION OF
Total P4,285,000 EQUIPMENT
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Cash – Collecting officer 50,000
Service income 15,000
Sales revenue 35,000
7. INCURRED OBLIGATION FOR PERSONAL SERVICES Income & Expense 50,000
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Problem 3. Cash – NT – MDS 120
1. Agency enters in RAOCO 6. Agency prepares a journal entry
2. Agency prepares a journal entry CIP – Building 1,000
Advances to contractor P 300 Accounts payable 850
Cash – NT – MDS P 300 Advances to contractor 150
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