Problem 21-2

Account Debit Credit

Account Name Code Amount Amount
1.) Journal Entries
1

2 Cash - Modified Disbursement System (MDS), Regular 10104040 8,000.00

Subsidy from National Government 40301010 8,000.00
To record receipt of NCA from DBM.

3 Office Equipment 10605020 1,200.00

Accounts Payable 20101010 1,200.00
To record delivery of Office Equipment

4 Office Supplies Inventory 10404010 200.00

Accounts Payable 20101010 200.00
To record delivery of Office Supplies per delivery receipt and IAR

5 Electricity Expenses 50204020 800.00

Telephone Expenses 50205020 200.00
Water Expenses 50204010 100.00
Security Services 50212030 350.00
Janitorial Services 50212020 250.00
Due to BIR 20201010 85.00
Cash - Modified Disbursement System (MDS), Regular 10104040 1,615.00
Payment of MOOE

6 Advances to Officers and Employees 19901040 1,500.00

Cash - Modified Disbursement System (MDS), Regular 10104040 1,500.00
To record grant of cash advance for travelling expenses.

7 Salaries and Wages - Regular 50101010 550.00

Personnel Economic Relief Allowance (PERA) 50102010 60.00
Due to BIR 20201010 50.00
Due to GSIS 20201020 15.00
Due to Pag-IBIG 20201030 10.00
Due to PhilHealth 20201040 5.00
Due to Officers and Employees 20101020 530.00
To record payroll.

8 Advances for Payroll 19901020 530.00

Cash - Modified Disbursement System (MDS), Regular 10104040 530.00
To record grant of cash advance for payroll.

9 Due to Officers and Employees 20101020 530.00

Advances for Payroll 19901020 530.00
To record liquidation of payroll fund.

10 Traveling Expenses - Foreign 50201020 1,000.00

Advances to Officers and Employees 19901040 1,000.00
To record liquidation of cash advance for travelling expenses - foreign.
 11 Cash - Collecting Officers 10101010 500.00
Advances to Officers and Employees 19901040 500.00
Cash - Treasury/Agency Deposit, Regular 10104010 500.00
CashTo- Collecting Officers 10101010
record receipt and deposit of refund of excess cash advance for traveling 500.00
expenses.

12 Accounts Payable 20101010 1,100.00

Due to BIR 20201010 500.00
Cash - Modified Disbursement System (MDS), Regular 10104040 600.00
To record payment for purchase of office equipment and office supplies.

13 Accounts Receivable 10301010 12,000.00

Other Service Income 40201990 5,000.00
Sales Revenue 40202160 7,000.00
To record billing revenue.

14 Cash - Collecting Officers 10101010 900.00

Accounts Receivable 10301010 900.00
To record collection of billed income.

15 Cash - Treasury/Agency Deposit, Regular 10104010 750.00

Cash - Collecting Officers 10101010 750.00
To record remittance to BTr.

16 Cash, Tax Remittance Advice 10104070 635.00

Subsidy from National Government 40301010 635.00
To record constructive receipt of NCA for TRA

17 Due to BIR 20201010 635.00

Cash, Tax Remittance Advice 10104070 635.00
To record remittance of taxes withheld thuTRA.

18 Due to GSIS 20201020 10.00

Due to Pag-IBIG 20201030 7.00
Due to PhilHealth 20201040 3.00
Cash - Modified Disbursement System (MDS), Regular 10104040 0.00 20.00
To record remittance of salary deductions.

2.) Adjusting Entries

a Office Supplies Expenses 50203010 160.00
Office Supplies Inventory 10404010 160.00
To record issuance of office supplies

b Depreciation - Machinery and Equipment 50501050 120.00

Accumulated Depreciation - Office Equipment 10605021 120.00
To record depreciation of office Equipment.

c Subsidy from National Government 40301010 3,735.00

Cash - Modified Disbursement System (MDS), Regular 10104040 3,735.00
To record reversion of unused NCA.
Problem 21-2

4.) Closing entries:

Account Name Account Code Debit Amount Credit Amount

Other Service Income 40201990 5,000.00
Sales Revenue 40202160 7,000.00
Revenue and Expense Summary 30301010 12,000.00
To close all income accounts.

Subsidy from National Government 40301010 4,900.00

Revenue and Expense Summary 30301010 4,900.00
To close all subsidy accounts.

Revenue and Expense Summary 30301010 3,590.00

Salaries and
Personnel Wages -Relief
Economic Regular
Allowance 50101010 550.00
(PERA) 50102010 60.00
Traveling Expenses - Foreign 50201020 1,000.00
Office Supplies Expenses 50203010 160.00
Water Expenses 50204010 100.00
Electricity Expenses 50204020 800.00
Telephone Expenses 50205020 200.00
Janitorial Services 50212020 250.00
Security Services 50212030 350.00
Depreciation - Machinery and Equipment 50501050 120.00
To close all expense accounts.

Revenue and Expense Summary 30301010 13,310.00

Accumulated
To Suplus (Deficit)and expense
close revenue 30101010 13,310.00
summary.

Accumulated Suplus (Deficit) 30101010 1,250.00

Cash -Treasury/Agency Deposit, Regular 10104010 1,250.00