Accounting for Government and Nonprofit Organizations

4 5. The Bureau of Jail Management and Penology is to purchase a car to serve as agency's service. Of the three bidders, they have chosen BTR Motors because of its promotion of free refrigerator upon purchase of a car. The car was purchased for P750,000 and the fair value of the refrigerator is 75,000. What is the entry to record the purchase of the car? a. Motor vehicles 750,000 Accounts payable b. Motor Vehicles 675,000 Accounts payable c. Accounts Payable 750,000 Cash-Modied Disbursement System (MDS), Regular Due to BIR d. Motor Vehicles 675,000 Ofce Equipment 75,000 Accounts payable 750,000 675,000 705,000 45,000 750,000 6. Philippine Rubber Research Institute received appropriation amounting to P30,000,000. for 2020. P25000000 of this appropriation was accompanied by Notice of Cash Allocation by the Department of Budget and Management (DBM). During the year 80% of obligations was incurred but only 70% of these obligations were paid by checks. What is the entry to recognize the reversion of unused Notice of Cash Allocation? a. Subsidy from national Government 6,000,000 Cash-Modied Disbursement System (MDS), Regular b. Subsidy from national Government 11,000,000 Cash-Treasury Agency Deposit, Regular 0. Subsidy from national Government 11,000,000 Cash-Modied Disbursement System (MDS), Regular d. Subsidy from national Government 6,000,000 Cash-Treasury Agency Deposit, Regular 6,000,000 11,000,000 11,000,000 6,000,000 l 1. The Department of Budget and Management issued Notice of Cash Allocation to National Disaster Risk Reduction and Management Council for special Modied Disbursement System accounts for payment of storm water management in the amount of P2,500,000. What is the journal entry to recognize receipt of NCA for special account in the general fund? a. Cash-Modied Disbursement System, Special 2,500,000 Subsidy from National Government 2,500,000 b. Cash-Modied Disbursement System, Special 2,500,000 Cash Treasury/Agency Deposit, Special 2,500,000 c. Cash Treasury/Agency Deposit, Special 2,500,000 Subsidy from National Government 2,500,000 d. Cash Treasury/Agency Deposit, Special 2,500,000 Cash-Modied Disbursement System, Special 2,500,000 2. The Maritime Industry Authority established accountability of their Ofcer for the damage of his computer in the office. The cost of the computer is P20,000 with net carrying value of P18,000 and depreciated replacement cost of P16,000. Assuming that the COA grants relief from accountability to accountable officer, what is the entry to record this adjustment? a. Other Deferred Credits 20,000 Due from Officers and Employees 20,000 b. Other Deferred Credits 18,000 Due from Officers and Employees 18,000 0. Other Deferred Credits 16,000 Due from Officers and Employees 16,000 d. Due from Ofcers and Employees 18,000 Other Deferred Credits 18,000 3. The Auditor of National Anti-Poverty Commission discovered an overage of P1,500 from a cash advance for building maintenance purposes that cannot be satisfactorily explained by the Disbursitiser. The Collecting Officer issued an official receipt upon the forfeiture of the overage in favor of the government. What is the entry to recognize forfeiture of cash overage of the Disbursitiser? a. Miscellaneous Income 1,500 Cash-Collecting Officers 1,500 b. Cash-Collecting Officers 1,500 Advances for Operating Expenses 1,500 C. Cash-Collecting Officers 1,500 Miscellaneous Income 1,500 d. Cash-Treasury/Agency Deposit, Regular 1,500 Miscellaneous Income 1,500 4. On April 1, it was discovered that there is overpayment made on the purchase of supplies by the National Nutrition Council amounting to P5,000. What is the entry to recognize the overpayment of purchased office supplies directly issued to end-user? a. Receivables-Disallowances/Charges 5,000 Office Supplies Expense 5,000 b. Cash-Collecting Officers 5,000 Receivables-Disallowances/Charges 5,000 C. Cash-Treasury/Agency Deposit, Regular 5,000 Cash-Collecting Officers 5,000 d. Cash-Collecting Officers 5,000 Office Supplies Expense 5,0009. Mega Motion Industries constructed a new sports complex for the Philippine Sports Commission intended for training of athletes competing internationally. The Contract Price of the project is P45,000,000, inclusive of VAT, with terms of 20% down payment, 50% progress billing, 75% progress billing, and 100% completion, with 10% retention fee of the progress billings. What is the journal entry to record the first progress billing for 50% completion? a. Construction in Progress-Building 22,500,000 Accounts Payable 22,500,000 b. Accounts Receivable 22,500,000 Progress Billing 22,500,000 C. Construction in Progress-Building 22,500,000 Advances to Contractors 9,000,000 Cash-Modified Disbursement System, Regular 13,500,000 d. Construction in Progress-Building 22,500,000 Advances to Contractors 9,000,000 Accounts Payable 13,500,000 10. The Bureau of Immigration's Collecting Officer collected immigration tax of P350, 000 and Travel tax P80, 000. The tax was directly deposited thru Authorized Agent Banks. What is the journal entry to record collection/remittance of income to BTr through Authorized Agent Banks? a. Cash-Collecting Officer 430,000 Accounts Receivable 430,000 Cash-Treasury/Agency Deposit, b. Regular 430,000 Cash-Collecting Officer 430,000 Cash-Treasury/Agency Deposit, C. Regular 430,000 Immigration tax 350,000 Travel tax 80,000 d. Cash-Collecting Officer 430,000 Immigration tax 350,0007. Agricultural Credit Policy Council creates a purchase order for an equipment amounting to P300,000 to JC Corporation. What is the entry to record the obligation? a. No entry, Posting to appropriate Registry of Allotments, Obligations and Disbursement Capital Outlays (RAODCO) b. Office equipment 300,000 Accounts payable 300,000 C. Office equipment 300,000 Cash-Modified Disbursement System, Regular 300,000 d. Office equipment 300,000 Subsidy from national Government 300,000 8. The Anti-Money Laundering Council main building was vastly damaged by fire last October 1. The council was transferred into a new building as temporary office until the main building is finished on its rehabilitation. The agency incurred an obligation for furniture and fixtures acquired for the temporary office amounting to P400,000 on November 15 and it was paid in full on December 15. Ignoring the tax implication, what is the journal entry to record the payment? a. Furniture and fixtures 400,000 Cash-Modified Disbursement System, Regular 400,000 b. Furniture and fixtures 400,000 Subsidy from national Government 400,000 C. Accounts payable 400,000 Subsidy from national Government 400,000 d. Accounts payable 400,000 Cash-Modified Disbursement System, Regular 400,000