A.

  ACCOUNTING AND BUDGET CYCLE

On January 1, 2022, Department XYZ has received an appropriation of
Php250,000,000 broken down as follows:
ALLOTMENT CLASS AMOUNT (Php)
Personnel Services 70,000.000
Maintenance and Other Operating Expenses 130,000,000
Capital Outlay 50,000,000

The Department of Budget and Management has released to Department XYZ

the following:
ALLOTMENT CLASS AMOUNT (Php)
Personnel Services 70,000.000
Maintenance and Other Operating Expenses 123,000,000
Capital Outlay 40,000,000

The DBM also released a Notice of Cash Allocation in the total amount of Php
220,000.000 for the operating requirement of the Department

During the year the following has transpired:

a.   Obligated and paid for PS broken as follows:

Basic Salaries, Regular Php 50,000,000
Personnel Economic Relief Allowance 4,300,000
Representation Allowance 1,200,000
Transportation Allowance 800,000
Year-End Bonus 5,000,000
Mid Year Bonus 5,000,000
Uniform and Clothing Allowance 900,000
Retirement and Life Insurance Premium (Employers 2,000,00
Share)
Philhealth Contributions 500,000
PAG IBIG Contributions 300,000

This study source was downloaded by 100000793310252 from CourseHero.com on 04-17-2022 01:12:26 GMT -05:00

https://www.coursehero.com/file/137865129/Assignment-Budget-and-Accounting-Entries-Questionspdf/
 b.   Deductions from payroll were as follows
Witholding tax Php 7,300,000
Retirement and Life Insurance Premium (Employees 1,500,000
Share)
Philhealth Premium 500,000
PAG IBIG Premium 450,000

c.   Obligated for MOOE broken down as follows:

Travelling Expenses Php1,000,000
Office Supplies 2,500,000
Other Supplies and Materials 10,000,000
Gasoline Expenses 1,500,000
Electricity Consumption 20,000,000
Water Consumption 5,000,000
Repair of Other Machineries 700,000
Repair of Office Buildings 2,500,000

Janitorial Services 23,000,000

Security Services 35,000,000
Rental Expenses 4500,000
General Services 8,000,000
Professional Services 3000,000
Insurance Expenses 2,500,000
Representation Expenses 900,000

This study source was downloaded by 100000793310252 from CourseHero.com on 04-17-2022 01:12:26 GMT -05:00

https://www.coursehero.com/file/137865129/Assignment-Budget-and-Accounting-Entries-Questionspdf/
 d.   As of year end, the following were ascertained to be outstanding (not paid)
Office Supplies Php500,000
Other Supplies and Materials 900,000
Gasoline Expenses 80,000
Electricity Consumption 5,000,000
Water Consumption 300,000
Repair of Office Buildings 500,000
Janitorial Services 3,000,000
Security Services 5,000,000

Rental Expenses 450,000

General Services 700,000
Representation Expenses 50,000

e.   Obligated for the following PPE acquisition:

On June 30, 2022, the Department purchased of 15 37,500,000
service vehicle. Additional 5 vehicle was given as a
promotional item because the Department
purchased these vehicles on cash basis.
Construction of an Office Building Extension 5,500,000
Purchase of various Laptops, desk tops, printers and 2,000,000
scanners

f.   Other Information
1.   All Office Supplies and Other supplies and Materials were delivered
during the year. Asset method is used in recognizing the supplies
2.   Witholding Tax for MOOE and CO is 5% deductible when paid, All tax
withheld will be remitted during the fiscal year
3.   All payroll deductions were remitted to respective agencies during the
year
4.   On December 31, 2022, 3 service vehicle were transferred to Region 10.
5.   On March 30, 2023, 5 vehicle were transferred to Department ABC.

This study source was downloaded by 100000793310252 from CourseHero.com on 04-17-2022 01:12:26 GMT -05:00

https://www.coursehero.com/file/137865129/Assignment-Budget-and-Accounting-Entries-Questionspdf/
 REQUIREMENTS

1.   What is the compound journal entry to record the PS transaction for the year?
2.   What is the indicated compound journal entry to record the incurrence of
expenses under MOOE?
3.   What are the indicated journal entries to record the under acquisition of assets
under CO??
4.   What are the indicated entries to record the remittance of withholding tax?
5.   What are the indicated entries for the transfer of Service Vehicle to Region 10
6.   What are the indicated entries for the transfer of Service Vehicle to Department
ABC?

This study source was downloaded by 100000793310252 from CourseHero.com on 04-17-2022 01:12:26 GMT -05:00

https://www.coursehero.com/file/137865129/Assignment-Budget-and-Accounting-Entries-Questionspdf/
Powered by TCPDF (www.tcpdf.org)