Reference no: EM133128914

Problem - Entity A is a newly formed government agency. Entity A's transactions and events during the calendar year 2022 are as follows:

1. Appropriation of the budget of the agency broken down as follows:

Personal Services 1,000,000

Maintenance and Other Operating Expenses 400,000

Capital Outlay 300,000

Financial Expenses 50,000

2. Approval of GAA Release Documents by DBM and related allotment received:

Personal Services 600,000

Maintenance and Other Operating Expenses 250,000

Capital Outlay 300,000

Financial Expenses 20,000

3. Incurred obligation for the following:

Rent for 2 years 60,000

Meralco Bill 4,000

Bayan Tel bill 2,000

Office Supplies 10,000

Various operating expenses 40,000

Travelling Expenses of Officers/employees 8,000

4. Receipt of the Notice of Cash Allocation, Php 1,000,000

5. And made the following disbursement.

a. Payment for 2years rent, Php 60,000

b. Payment for Meralco bill Php 4,000

c. Payment of Bayan Tel bill, Php 2,000 Office supplies Php 10,000

d. Issued MDS check to Doren C. for travelling expenses Php 8,000

6. Liquidation of the cash advance for travel by Doren C. Php 6,000

7. Refund of excess cash advance for travelling expenses by Doren C. Php 2,000

8. Deposit of collection for excess cash advance to BTr. Php 2,000

9. Incurred obligation for the acquisition of Office equipment, Php 200,000

10. Receipt of Office Equipment per invoice and delivery receipts, Php 200,000

11. Payment of Office Equipment less 12% withholding tax

12. Remitted thru TRA the withholding tax, Php24,000

13. Collection of Other Income/ Other Receipts which the agency is authorized to use in their operations are: Other Service Income Php 10, 000 Sales Revenue, Php 40,000

14. Deposited the above collections in the bank.

15. An obligation is incurred for personal services, Php 500,000. In this connection, the disbursing officer is granted a cash advance of Php 400,000.

16. The disbursing officer pays salaries and other allowances, as follows: Salaries Php 440,000 PERA 60,000 Total Php 500,000 Less: salary deductions 100,000 Net amount paid Php 400,000 Withheld taxes Php 37,000 GSIS premiums 53,000 Pag-ibig premiums 4,000 Philhealth premiums 6,000 Php 100,000

17. Remitted withholding taxes thru the TRA, Php 37,000

18. Remitted the other salary deductions to pertinent parties, Php 63,000

19. Obligation and payment of the agency's share on the following items:

Life and Retirement Insurance Contract Php 75,000

Pag-ibig contributions 4,000

Philhealth contributions 6,000

Total Php 85,000

20. Incurred and paid bank service charges for Php 15,000

Additional data at year end.

1. Depreciation expense for the office equipment, Php 15,000

2. Rent expense for the year, Php 30,000

3. Office supplies consumed, Php 8,000

Required -

1. Journal entries to record the foregoing transactions. If no journal entry is needed, state the registry or other document where the transaction or event is recorded.

2. Adjusting and closing entries

3. Prepare a pre-closing trial balance

4. Prepare a Statement of Revenues and Expenses from the pre-closing trial balance

5. Prepare a post-closing trial balance

6. Prepare a Balance Sheet, from the post-closing trial balance.