Accounting for Government and Nonprofit Organizations

4. Which of the following is not correct with regards to the policies on idle, unserviceable and fully depreciated PPE? a. A PPE is said to be unserviceable if it is no longer capable of providing the entity with future economic benets or service potential. b. The cost of fully depreciated assets remaining in service and the related accumulated depreciation and accumulated impairment losses shall not be removed from the accounts. c. Temporary idle activity or abandonment of PPE precludes to depreciating the asset, as future benets are consumed not only through usage but also through obsolescence, and wear and tear. d. PPE reported in the Inventory and Inspection Report of Unserviceable Property shall be dropped from the books by debiting Impairment Loss-Property, Plant and Equipment. 5. Intellectual Property Ofce of the Philippines spent P750,000 (inclusive of VAT) in acquiring a new software package from ITB Technologies Inc. The useful life of the software is determined to be 5 years with no residual value. The journal entry to recognize the amortization of the software at the end of the rst year? a. Intangible Assets 150,000 Accumulated Amortization-Computer Software 150,000 b. Intangible Assets 150,000 Computer Software 150,000 c. Amortization-Intangible Assets 150,000 Computer Software 150,000 d. Amortization-Intangible Assets 150,000 Accumulated Amortization-Computer Software 150,000 6. On September 15, the Department of Finance remitted to the Bureau of Treasury the P420,000 collections of their Collecting Officer for passports and visa fees from the month of August. What is the journal entry to record the collection of passports and visa fees? a. Cash Collecting Officers 450,000 Cash in Bank-Local Currency Current Account 450,000 b. Cash-Treasury/Agency Deposit, Regular 450,000 Passport and Visa Fees 450,000 c. Cash Collecting Officers 450,000 Passport and Visa Fees 450,000 d. Cash Collecting Officers 450,000 Cash-TreasurylAgency Deposit, Regular 450,000 7. Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development purchased an agricultural machine on account at P120, 000, with credit terms of 3710, n730. What is the journal entry to record the purchase of machine on account? a. Agricultural and Forestry Equipment 120,000 Accounts Payable 120,000 b. Plant, Property and Equipment 120,000 Accounts Payable 120,000 c. Agricultural and Forestry Equipment 116,400 Accounts Payable 116,400 d. Plant, Property and Equipment 116,400 Accounts Payable 116,400 8. During 2020, Bureau of Plant Industry transferred cash of P760,000 to Bureau of Agricultural Research for a fertilizer testing project. What is the journal entry of Bureau of Plant Industry to record the transfer of funds? a. Cash-TreasurylAgency DepositlTrust 760,000 Cash-Collecting Officers 760,000 b. Due from Bureau of Plant Industry 760,000 Cash-Modified Disbursement System, Regular 760,000 c. Due from Bureau of Plant Industry 760,000 Cash-TreasurylAgency DepositlT rust 760,000 d. Cash-Collecting Officers 760,000 Due to Bureau of Plant Industry 760,000 1. Paulo Jake is the caretaker of the farm where the breeding stocks of Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development is located. The caretaker receives P10,000 monthly salary. What is the entry to recognize the payment of salary of the caretaker? a. Salary and Wages 10,000 Cash in Bank-Local Currency, Current Account 10,000 b. Salaries and Wages-Casual/Contractual 10,000 Cash in Bank-Local Currency, Current Account 10,000 c. Salaries and Wages-Casual/Contractual 10,000 Cash-Modified Disbursement System, Regular 10,000 d. Salary and Wages 10,000 Cash-Modified Disbursement System, Regular 10,000 2. On January 1, 2020, the Department of Science and Technology decided to lease out an owner-occupied building with the following information: Cost P4, 500,000 Accumulated Depreciation 2,250,000 Impairment 200, 000 Residual Value 50,000 Original useful life 10 years Remaining useful life 5 years The journal entries shall to recognize transfer from Plant, Property and Equipment to Investment Property includes the following, except: A debit to Investment Property, Buildings for P4,500,000. A debit to Impairment Losses Buildings for P200,000. A credit to Buildings for P4,500,000. A credit to Accumulated Impairment Losses-Investment Property, Buildings for P200,000. 51.057!\" 3. Forest Management Bureau purchased a land for capital appreciation at a cash price of P3,000,000. Professional fees and transfer taxes totaling to P120,000 were also paid. The journal entry to recognize the purchase of investment property includes the following, except: A credit to Cash Modied Disbursement System, Regular for P3,120,000. A debit to Investment Property for P3,000,000. A credit to Cash-Disbursing Officer for P3,120,000. A debit to Professional fees and Transfer taxes for P120,000. 51.0.6! 9. The collections of Bureau of Local Government Finance amounting to P900,000 was remitted to the Bureau of Treasury. What is the journal entry of the Bureau of Treasury (BTr) to record a. Cash in Bank, Local Currency-Bangko Sentral ng Pilipinas 900, 000 Cash-Treasury/Agency Deposit, Regular 900,000 b. Cash-Treasury/Agency Deposit, Regular 900, 000 Cash-Collecting Officer 900,000 c. Cash in Bank, Local Currency-Bangko Sentral ng Pilipinas 900, 000 Cash-Collecting Officer 900,000 d. Cash-Treasury/Agency Deposit, Regular 900, 000 Cash in Bank, Local Currency-Bangko Sentral ng Pilipinas 900,000 remittance of income of Bureau of Local Government Finance? 10. The The Secretary of Civil Aeronautics Board was granted cash advance amounting to P150,000 for their travelling expenses to represent the country in an international convention to be held in New York. What is the journal entry to record the grant of cash advances? a. Cash Disbursitiser 150,000 Cash-Modified Disbursement System, Regular 150,000 b. Cash-Collecting Officers 150,000 Advances to Officers and Employees 150,000 C. Advances to Officers and Employees 150,000 Cash Disbursitiser 150,000 d. Advances to Officers and Employees 150,000 Cash-Modified Disbursement System, Regular 150,000