Reference no: EM133180835
Question 1 - ABC Council provides financial support to a number of independent fine-art projects in the city. Data concerning several events in 2022 are as follows:
A fund-raising drive yielded P250,000 in cash and P50,000 in pledges. Based on past experience, it was estimated that 10% of the pledges are estimated to be uncollectible.
Art fair yielded P500,000 in gross revenue. The cost of the fair amounted to P80,000.
P40,000 of the pledges received were collected during the year.
The following expenses were paid: salaries of trustees - P100,000; rent expense - P30,000; other expenses - P10,000
Required - How much is the excess of revenues over expenses of the council for the year?
Question 2 - A National Government Agency has an approved appropriation for 2022 of P100,000,000. 25% of the amount was appropriation reserve and the balance was released per General Allotment Release Order (GARO) No. 2022-1. Notice of Cash Allocation of P30,000,000 was received by the agency.
Required - How much is the Subsidy from National Government to be recorded by the agency?
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