The document outlines accounting entries for various financial transactions of Y Agency. It describes entries to recognize a financial asset held for trading, transaction costs, an investment in foreign treasury bonds, and the purchase of agricultural machinery on account. Depending on whether the agency pays within or beyond the discount period, the entries include recognizing payment in cash or losses from missing the discount.
The document outlines accounting entries for various financial transactions of Y Agency. It describes entries to recognize a financial asset held for trading, transaction costs, an investment in foreign treasury bonds, and the purchase of agricultural machinery on account. Depending on whether the agency pays within or beyond the discount period, the entries include recognizing payment in cash or losses from missing the discount.
The document outlines accounting entries for various financial transactions of Y Agency. It describes entries to recognize a financial asset held for trading, transaction costs, an investment in foreign treasury bonds, and the purchase of agricultural machinery on account. Depending on whether the agency pays within or beyond the discount period, the entries include recognizing payment in cash or losses from missing the discount.
The document outlines accounting entries for various financial transactions of Y Agency. It describes entries to recognize a financial asset held for trading, transaction costs, an investment in foreign treasury bonds, and the purchase of agricultural machinery on account. Depending on whether the agency pays within or beyond the discount period, the entries include recognizing payment in cash or losses from missing the discount.
1) The entries to be made by Y Agency are as follows:
Financial ssets held for Trading 10201010 P 200,000
Cash in Bank-Local Currency, Banko Sentral ng Pilipinas 10102010 200,000 To recognize the acquired financial asset held for trading
Other Financial Charges 50301990 5,000
Cash in Bank-Local Currency, Banko Sentral ng Pilipinas 10102010 5,000 To recognize the transaction cost incurred
2) The entries to be made by Y Agency are as follows:
Investment in Treasury Bonds-Foreign
Cash in Bank-Local Currency, Banko Sentral ng Pilipinas 10202040 P 205,000 To recognize investment foreign treasury bonds 10102010 205,000
3) The accounting entries to recognize the machine shall be as follows:
At the date of acquisition
Agricultural and Forest Equipment 10605040 P 245,000 Accounts Payable 20101010 245,000 To recognize purchase of machinery on account
If the agency pays within the discount period
Accounts payable 20101010 245,000 Cash-Modified Disbursement System (MDS), Regular 10104040 240,100 Due to Bureu of Internal Revenue (BIR) 20201010 4,900 To recognize the payment of machinery within the discount period If the agency pays beyond the discount period Accounts payable 20101010 245,000 Other Losses 50504990 5,000 Cash-Modified Disbursement System (MDS), Regular 10104040 245,100 Due to Bureu of Internal Revenue (BIR) 20201010 4,900 To recognize the payment of machinery beyond the discount period