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Activity 2

The document outlines the trial balance of Entity A, a government entity, at the beginning of the period, detailing its accounts and balances. It lists various transactions and events that occurred during the calendar year 2024, including receipts, contracts, salary accruals, and payments for expenses. The document concludes with a requirement to analyze each transaction and prepare necessary journal entries.

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Jules Bryan Sabucido
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152 views2 pages

Activity 2

The document outlines the trial balance of Entity A, a government entity, at the beginning of the period, detailing its accounts and balances. It lists various transactions and events that occurred during the calendar year 2024, including receipts, contracts, salary accruals, and payments for expenses. The document concludes with a requirement to analyze each transaction and prepare necessary journal entries.

Uploaded by

Jules Bryan Sabucido
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Excellence | Service | Leadership and Good Governance | Innovation | Social Responsibility | Integrity | Professionalism | Spirituality

ACTIVITY: The trial balance of Entity A (a government entity) at the beginning of the period is shown
below:

ACCOUNTS DEBIT CREDIT

Cash – Collecting Officer 30,000

Accounts Receivable
80,000

150,000
Buildings

Equipment 160,000

Accounts Payable 60,000

Due to BIR 180,000

Due to GSIS 60,000

Due to Pag-IBIG 20,000

Due to PhilHealth 1,000

Accumulated Surplus (Deficit) 333,000

TOTAL 1,250,000 1,250,000

Transactions and events during the calendar year 2024:


a. Receipt of GAA amounting to 1,200,000.
b. Receipt of allotment amounting to 1,100,000.
Entity A enters into the following contracts:
- Employment contracts - 420,000.
- Purchase of office equipment - 300,000.
- Purchase of office supplies - 150,000.
d. Receipt of Notice of Cash Allocation amounting to ® 1,050,000.
e. Accrual of 400,000 salaries upon approval of payroll, including granting of cash advance
and liquidation thereof.

The breakdown of salaries is as follows:

Salaries and Wages 380,000


Excellence | Service | Leadership and Good Governance | Innovation | Social Responsibility | Integrity | Professionalism | Spirituality

Personal Economic Relief Allowance (PERA) 20,000


Gross Compensation 400,000
Withholding Tax 90,000
GSIS 30,000
Pag-IBIG 20,000
PhilHealth 10,000

Total Salary Deductions 150,000

f. Receipt of delivery of purchased office equipment worth 320,000, on account.


g. Payment of 320,000 accounts payable. Taxes withheld amount to 20,000.
h. Receipt of delivery of purchased office worth 150,000, on account.
i. Payment of 120,000 accounts payable. Taxes withheld amount to 10,000.

j. Payment for the following expenses:

Water 20,000
Electricity 60,000
Telephone 40,000
Janitorial 80,000
Security 100,000
Total 300,000
Less: Withholding taxes (20,000)
Net 280,000

k. Issued office supplies worth 130,000 to end users.


l. Billed revenue for Waterworks System Fees amounting to 240,000.
m. Remitted all taxes withheld to BIR.
n. Remitted all contributions due to GSIS, PhilHealth, Pag-IBIG.

Requirements:
1. Analyze each transaction and prepare journal entries if necessary.

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