Exercise AC 518 2nd Sem 2016

EXERCISE
AC 518
Hereunder is the Unadjusted Trial Balance of the Department of Public Works and
Highways as of December 31, 2015:
Account Title
Cash Treasury/Agency Deposit, Reg
Cash - MDS, Regular
Cash TRA
Due from Officers and Employees
Office Supplies Inventory
Prepaid rent
Prepaid insurance
Building
Office equipment
Accum. Depn Building
Accum. Depn Equipment
Accounts Payable
Guaranteed/Deposit Payable
Accumulated Surplus/Deficit
Other Business Income
Rent income
Subsidy from National Government
Salaries and wages Regular
PERA
Travelling expenses
Fuel, oil and lubricants
Electricity
Total
Acct Code
10104010
10104040
10104070
10305020
10404010
19902020
19902050
10604010
10605020
10604011
10605021
20101010
20401040
30101010
40202990
40202050
40301010
50101010
50102010
50201010
50203090
50204020
Debit
Credit
100,000
180,000
70,000
20,000
450,000
360,000
120,000
11,000,000
4,000,000
1,500,000
450,000
1,500,000
350,000
7,640,000
300,000
200,000
8,000,000
2,670,000
220,000
200,000
200,000
350,000
-----------P19,940,000
========
-------------P19,940,000
=========
Adjustments:
1. A collection per OR#1032 amounting to P345 was recorded as P435 in the books. But the
deposit was correctly recorded.
2. Prepaid Rent covered the period June 1, 2015 to May 31,2016.
3. Uncollected Rent Income P25,000.
4. An immediate investigation was conducted by the auditor to a collecting officer of DOT
since the office was ransacked and resulted to loss of cash from its collection totaling
P150,000. Immediately the officer reported to a nearby police station and blotter the incident.
During the investigation, the collecting officer was questioned why did he not deposit his
collections. The said officer requested for relief from cash accountability. But the
investigation noted that there is negligence committed and left the office with his collections
just put inside his unlocked drawer justifying that he always do that practice and no same
incident happened. So the request was denied.
a. Give the journal entry for the amount lost upon receipt of the decision in order to
establish the receivable account from the collecting officer.
b. The journal entries when his request was denied. It was already final and executory. He
settled his accountability.
5. Transportation expenses charged to the petty cash fund in the amount of P2,000 was
obligated but erroneously recorded to Fuel, oil and lublicants..
6. Liquidation of travel cash advance of P12,000 was erroneously credited to Guaranteed
Deposit Payable account.
7. Remittance to BIR was erroneously recorded to Cash Treasury/Agency Deposit, Reg

amounting to P70,000.
8. Accounts Payable includes P15,000 which has been in books for over two years. This
pertains to repairs.and maintenance of IT equipment.
9. Total office supplies used in operation amounted to P125,000.
10. Insurance paid during the period was effective, October 1, 2015 until September 30, 2016 or
for one year period.
11. A seminar fee of P20,000 was included in the cash advance for travel however, the
liquidation should that the seminar fee was recorded all to travelling expnses..
Required:
1. Prepare the adjusting and closing entries
2. Prepare the following:
2.1 Statement of Operation
2.2 Statement of Changes in Net Assets
2.3 Statement of Financial Position
Instructions:
1.
Refer below to the format of the Working Trial Balance to be used especially the columns:
Name of the Co.

Working Trial Balance
For the period ending Dec. 31_
Acct
Code
Account
Title
Unadjusted T/B
Dr
Cr
Adustments
Dr
Cr
Adjusted T/B
Dr
Cr
Closing
Dr
Cr
Post-closing
Dr
Cr
2. Copy the Unadjusted T/B given to the 1st 2 cols.

3. Prepare and summarize the adjusting entries in a separate sheet.
4. Post the adjusting entries to the next two cols of the worksheet.
5. Extend the balances to the next two cols (Adjusted T/B).
6. Summarize the closing entries in a separate sheet. (Refer to the hand-outs regarding the steps in
closing the accounts involved.
7. Post to the next 2 cols the closing entries.
8. Extend the balances to the next 2 clos, the post-closing T/B.
9. Prepare the required Financial Statements
10. Submit the output on Monday for MW and Tues for TTh.
Thank you. This is your output for AC 518 and will be graded and part of your Final Exam
TNCRestificar
Teacher

Exercise AC 518 2nd Sem 2016

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EXERCISE

7. Remittance to BIR was erroneously recorded to Cash Treasury/Agency Deposit, Reg

Name of the Co.

2. Copy the Unadjusted T/B given to the 1st 2 cols.

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