MARY THE QUEEN COLLEGE OF PAMPANGA INC.

Gapan-Olongapo Road, Guagua, Pampanga 2003

Module No – Title : Internship Program -during the COVID 19 Pandemic

Time Frame : Week 1- 4

1. Overview

The Covid-19 pandemic has impacted education and students’ training and internships in most parts of
the country. As we steer our way through this unusual condition, the department is pooling all its available
resources to provide reinforcement for its faculty professional development and to introduce innovative online
learning approaches to uphold on its mission of providing quality education to its students.

In a situation where transmission of the said virus is high, holding traditional in-site internships is unsafe and
unfeasible. Under this circumstance that preclude an in-person experience, the institute developed an alternative
practicum structure for its students that can meet the minimum standards of an internship.

2. Desired Learning Outcome

Through this module, you should be able to:

a) Analyzing and journalizing transactions up to worksheet 90 hrs

b) Payroll preparation 30 hrs
c) Remittance of monthly BIR withholding taxes as well as the statutory deductions. 30 hrs
d) Bank Reconciliation 20 hrs

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 MARY THE QUEEN COLLEGE OF PAMPANGA INC.
Gapan-Olongapo Road, Guagua, Pampanga 2003

3. Content/ Discussion

You applied for an internship program in one of the corporations in Pampanga. You were assigned in accounting
department under the supervision of Ms. Sharon C. Mega, the Accounting Head. As she promised to you, you will learn to do
the following tasks:

a) Analyzing and journalizing transactions up to worksheet 90 hrs

b) Payroll preparation 30 hrs
c) Remittance of monthly BIR withholding taxes as well as the statutory deductions. 30 hrs
d) Bank Reconciliation 20 hrs
e) Prepare Financial Statements 40hrs
f) File the Annual ITR 30 hrs

Milk Chu Enterprise, a VAT-registered entity, started operations in January, 2015. It was authorized by the Securities and
Exchange Commission to issue 1,000,000 ordinary shares at a par value of P10 per share. It is engaged in buying and selling
milk tea and frappe related products. It is located at Inson Building, Calulut, City of San Fenando (P) with monthly rental of
P70,000 net of VAT from Mr. CISCO INSON who also requires the company to have a six month’s Rent Deposit. Below are the
list of Officers and Staff.

Company Profile
President : Ms. Kim A. Chu
Vice President- Operation : Mr. Nian D. Liam
Sales Representative : Mr. Bities F. Oppa
Delivery man : Mr. Paquito P. Gusion
Accounting Head : Ms. Sharon C. Mega
Accounting Staff : Mr. Edison G. Sanchez
Cashier : Ms. May C. Galang
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 MARY THE QUEEN COLLEGE OF PAMPANGA INC.
Gapan-Olongapo Road, Guagua, Pampanga 2003

Salary
President : P40,000
Vice President- Operation : P30,000
Sales Representative : P15,000 plus 1% allowance in excess of P1,500,000 sales
Delivery man : P13,000
Accounting Head : P20,000
Accounting Staff : P15,000
Cashier : P15,000

Payroll Related Information

Employee TIN SSS PhilHealth No. PagIbig No.
Ms. Kim A. Chu 123-123-123 02-1234567-3 07-0065983210 121049575633
Mr. Nian D. Liam 234-234-234 02-2345671-5 02-1255039710 121049575633
Mr. Bities F. Oppa 333-444-555 02-3516541-2 02-6584216610 121216766066
Mr. Paquito P. Gusion 123-456-789 03-1234567-5 06-1546124500 121108527189
Ms. Sharon C. Mega 789-654-321 03-6521241-6 03-0654005413 121081087165
Mr. Edison G. Sanchez 123-234-345 03-2568971-5 03-2651103335 121081098415
Ms. May C. Galang 111-222-333 03-2569461-3 02-2655500021 121088841165

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 MARY THE QUEEN COLLEGE OF PAMPANGA INC.
Gapan-Olongapo Road, Guagua, Pampanga 2003

The applicable allowance for The Sales Representative is payable every 5 th of the following month.

Duties and Responsibilities

Ms. May C. Galang is tasked with the receipts of cash, she issues the cash invoice for cash sales, and official receipts for
collection. She prepares the Daily Collection Report to be checked by Ms. Mega. The cash is then remitted to Mr. Liam for
safekeeping prior to deposit. She also receives all deliveries and acts as a petty cash custodian of P20,000 fund. The customer
withheld 1% on sales.

Mr. Edison G. Sanchez is tasked to record vouchers as well all the entries in the book. Ms. Sharon C. Mega certifies the
correctness of the vouchers including the supporting documents before final approval of Mr. Nian D. Liam. He also prepares
the payroll payable every 15th and 30th of the month to be checked by Ms. Sharon C. Mega and to be approved by Ms. Kim A.
Chu.

Ms. Sharon C. Mega, aside from checking the works of May Galang and Edison Sanchez, prepares the check for approved
vouchers to be signed by Mr. Liam and Ms. Chu. All checks to supplier, except for utilities are computed net of withholding tax
except for payments made via petty cash. She also prepares monthly reports such as financial statements and bank
reconciliation. She is also responsible in the filing of BIR returns.

Mr. Bities F. Oppa prepares the sales invoice. Every other week he performs the inventory count or as deemed
necessary with the supervision of Mr. Nian D. Liam. He prepares purchase order document, which is to be verified by the Mr.
Liam to be approved by the Ms. Chu.

Mr. Paquito Gusion assists the Mr. Oppa in fulfilling customer’s orders by delivering the same to the customers.

Mr. Nian D. Liam monitors the finances of the corporation; he deposits the cash collections twice a week. He is a co-
signatory of checks.

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Gapan-Olongapo Road, Guagua, Pampanga 2003

Ms. Chu approves all documents and a signatory of check for disbursement.

Other Relevant Information

The corporation hires the GenServ Provider for one (1) manpower for maintenance with for a monthly rate of P16,000
VAT exclusive and Tiger Eye Security Services for two (2) security guards with a monthly salary of P20,000 each plus admin
fee of 8% exclusive of VAT.

All sales, purchases and freight include 12% VAT. The terms of credit sales are 2/10, n/30, FOB shipping point, while all
credit purchases are subject to terms of 1/5, n/15 except for the transaction with Ms Jenny Lapira of All About Plastics and Mr.
Jeffrey Gonzales of Hidden Leaf which has a term of n/30.

Given below is its trial balance as of November 30, 2020, the end of its eleven months of operation.

Milk Chu Enterprise

Trial Balance
30-Nov-20

Acct # Account Name Debit Credit

2,332,189.3
1001 Cash 1
20,000.0
1002 Petty Cash Fund 0
1,250,000.0
1003 Accounts Receivable 0
1,271,214.2
1004 Merchandise Inventory 9

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 MARY THE QUEEN COLLEGE OF PAMPANGA INC.
Gapan-Olongapo Road, Guagua, Pampanga 2003

183,961.0
1005 Input Tax 4
145,600.0
1006 Office Supplies 0
45,000.0
1007 Store Supplies 0
123,000.0
1008 Prepaid Insurance 0
25,319.6
1009-A Prepaid Income Tax 6
1,883.2
1010 Final Tax At Source 6
420,000.0
1011 Rent Deposit 0
400,000.0
1012 Office Equipment 0
174,333.3
1012-1 Accumulated Depreciation - Office Equipment 3
350,000.0
1013 Office Furniture and Fixtures 0
135,000.0
1013-1 Accumulated Depreciation - Off. Furn. And Fixture 0
580,000.0
1014 Store Equipment 0
248,833.3
1014-1 Accumulated Depreciation - Store Equipment 3
450,000.0
1015 Store Furniture and Fixtures 0
1015-1 Accumulated Depreciation - Store Furn. and Fix. 184,275.0

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 MARY THE QUEEN COLLEGE OF PAMPANGA INC.
Gapan-Olongapo Road, Guagua, Pampanga 2003

0
3,000,000.0
1016 Vehicle 0
562,500.0
1016-1 Accumulated Depreciation - Vehicle 0
655,000.0
2001 Accounts Payable 0
4,021.0
2002 Salaries Payable 0
1,400.0
2003 Pag-IBIG Payable 0
4,440.0
2004 PHIC Payable 0
14,350.0
2005 SSS Payable 0
11,500.0
2006 Utilities Payable 0
6,000.1
2008 Withholding Tax on Compensation 5
15,928.5
2009 Income Tax Withheld 7
226,428.5
2010 Output Tax 7
2,000,000.0
2011 Notes Payable 0
4,000,000.0
3001 Share Capital 0
500,000.0
3002 Share Premium 0

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 MARY THE QUEEN COLLEGE OF PAMPANGA INC.
Gapan-Olongapo Road, Guagua, Pampanga 2003

1,149,453.0
3003 Retained Earnings 3
19,535,714.2
4001 Sales 9
184,821.4
4002 Sales Discounts 3
28,035.7
4003 Sales Returns and Allowances 1
9,416.2
4004 Interest Income 9
14,571,428.5
5001 Purchases 7
98,410.7
5002 Purchases Discounts 1
10,714.2
5003 Purchases Returns and Allowances 9
131,214.2
5004 Freight In 9
1,628,000.0
5005 Salaries Expense 0
266,122.0
5006 Employee Benefits 0
170,000.0
5007 Gas and Oil 0
23,000.0
5008 Insurance Expense 0
135,000.0
5009 Interest Expense 0
5010 Miscellaneous Expense 34,500.0

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 MARY THE QUEEN COLLEGE OF PAMPANGA INC.
Gapan-Olongapo Road, Guagua, Pampanga 2003

0
22,000.0
5011 Advertising Expense 0
605,000.0
5012 Security and Maintenance 0
770,000.0
5013 Rent Expense 0
66,000.0
5014 Repair and Maintenance 0
27,500.0
5015 Representation Expense 0
143,000.0
5016 Utilities Expense 0
56,000.0
5017 Taxes and Licenses 0
87,929.0
5018 Income Tax Expense 0
29,547,718. 29,547,718.
Totals 56 56

The transactions for the last month of the year are presented with supporting documents

Please refer to the company’s chart of accounts:

Company Chart of Accounts

Account
Account No. Account Name No. Account Name
1001 Cash 3001 Share Capital

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1002 Petty Cash Fund 3002 Share Premium

1003 Accounts Receivable 3003 Retained Earnings
1004 Merchandise Inventory 3004 Income Summary
1005 Input Tax 4001 Sales
1006 Office Supplies 4002 Sales Discounts
1007 Store Supplies 4003 Sales Returns and Allowances
1008 Prepaid Insurance 4004 Interest Income
1009-A Prepaid Income Tax 5001 Purchases
1009-B Deferred Input Tax 5002 Purchases Discounts
1010 Final Tax At Source 5003 Purchases Returns and Allowances
1011 Rent Deposit 5004 Freight In
1012 Office Equipment 5005 Salaries Expense
Accumulated Depreciation - Office
1012-1 Equipment 5006 Employee Benefits
1013 Office Furniture and Fixtures 5007 Gas and Oil
Accumulated Depreciation - Off. Furn. And
1013-1 Fixture 5008 Insurance Expense
1014 Store Equipment 5009 Interest Expense
Accumulated Depreciation - Store
1014-1 Equipment 5010 Miscellaneous Expense
1015 Store Furniture and Fixtures 5011 Advertising Expense
Accumulated Depreciation - Store Furn. and
1015-1 Fix. 5012 Security and Maintenance
1016 Vehicle 5013 Rent Expense
1016-1 Accumulated Depreciation - Vehicle 5014 Repair and Maintenance
2001 Accounts Payable 5015 Representation Expense
2002 Salaries Payable 5016 Utilities Expense
2003 Pag-IBIG Payable 5017 Taxes and Licenses
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 MARY THE QUEEN COLLEGE OF PAMPANGA INC.
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2004 PHIC Payable 5018 Income Tax Expense

Depreciation Expense - Office
2005 SSS Payable 5019 Equipment
Depreciation Expense - Store
2006 Utilities Payable 5020 Equipment
2007 Dividends Payable 5021 Depreciation Expense - Vehicle
Depreciation Expense- Store Furn and
2008 Withholding Tax on Compensation 5022 Fix.
Depreciation Expense-Office Furn and
2009 Income Tax Withheld 5023 Fix
2010 Output Tax 5024 Bad Debts Expense
2011 Notes Payable

Instructions:
1) Fill out the necessary information in filing the Remittances to SSS, Philhealth, PagIbig and BIR. ok

2) Make the following deposit on December 3 ORs 12015-12017

December 9 ORs 12018-12020
December 14 ORs 12021-12024
December 23 ORs 12025-12028
December 31 ORs 12029-12035

2) Replenish petty cash fund on December 12, 2020 and December 22, 2020. ok

3) Prepare the payroll for 15th and 30th pay-out. ok

4) The check for Bank of Philippine Island is for the monthly amortization of loan plus 1% interest on outstanding balance.
The Loan balance is payable for 50 months. ok

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 MARY THE QUEEN COLLEGE OF PAMPANGA INC.
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5) Count the inventories based on Purchases, Sales, debit and credit memo. For store supplies the company has remaining
220 dozens of 40 Liter Boxes and 180 dozens of 30 Liter boxes. ok

6) Provide depreciation for 2020. ok

 Furniture and fixtures have a useful life of 10 years with 10% salvage value.
 Equipment have a useful life of 8 years with 20% salvage value.
 Vehicle have a useful life of 6 years with 25% salvage value.

7) Only 20% of the office supplies are on hand. ok

8) Record employer’s share on SSS, Philhealth and Pag-Ibig Contribution. ok

9) Adjust the prepaid insurance. ok

10)Acrrue Ms. Oppa allowance for December. ok

11)Record the P1.70 Dividends declared on December 24, 2020, for record on January 2, 2021 and distribution on
January 15, 2021 ok

12)Close the input and output tax account ok

13)Prepare the Bank Reconciliation for the month of December.

14)Prepare the ITR.

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4. Expected Output
1. An Excel file containing the following in separate sheets:
a. General Journal
b. Purchases Journal
c. Sales Journal
d. Cash Receipts Journal
e. Cash Disbursements Journal
f. Petty Cash
g. Worksheet (10 column)

2. An Excel file containing the following in separate sheets:

a) BIR Forms
b) Financial Statements
c) Bank Reconciliation Report

3. Reflection Journal on webinars

4. Case Analysis
5. Tutorial – Narrative Report with picture attached
6. Evaluation on the Program

5. Evaluation

A quiz will be given to assess your knowledge and work on the bookkeeping proccess.

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7. References
Manuel, Zenaida Vera-Cruz (2018) 21stt Century Accounting Process, Basic Concepts and Procedures, Manila, Philippines:
Zenaida Vera-Cruz Manuel.

Ballada, Win. (2020) Basic Financial Accounting and Reporting, Cavite, Philippines: Dom Dane Publishers & Made Easy
Books.

Cabrera, Ma. Elenita B. & Cabrera, Gilbert Anthony B. (2018) Financial Accounting and Reporting, Manila, Philippines:
GIC Enterprises & Co., Inc.

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