Accounting for Government and Nonprofit Organizations

T. On March 1, 2020, the construction materials for the renovation of the office of the Secretary of National Defense arrived with pertinent documents such as delivery receipt and sales invoice amounting to P40,000. What is the entry to recognize the delivery and acceptance of construction materials with charge invoice? 3. Accounts Payable 40,000 Cash-Modified Disbursement System, Regular 40,000 b. Construction materials inventory 40,000 Cash-Modified Disbursement System, Regular 40,000 0. Construction materials inventory 40,000 Accounts payable 40,000 No entry, Posting to appropriate Registry of Allotments, d. Obligations and Disbursements 8. A parcel of land with fair value of P10,000,000 was donated by a group of retired soldiers to the Armed Forces of the Philippines (AFP) under a condition that a hospital for soldiers will be constructed on it. What is the entry to recognize the land received as donation? a. Land 10,000,000 Income from Grants and Donations in Kind 10,000,000 b. Land 10,000,000 Other Deferred Credits 10,000,000 0. Other Deferred Credits 10,000,000 Income from Grants and Donations in Kind 10,000,000 No entry, posting in the appropriate registry d. only 5. The construction of the oodway in Marikina City was delayed by 6 weeks. According to the contract, any delay will be penalized by 5% of 1% of the contract price per week. Assuming that the contract price for the construction of oodway is P36,000,000, what is the entry to recognize collection of liquidated damages? a. Cash-Collecting Ofcers 108,000 Miscellaneous income 108,000 b. Cash-Collecting Ofcers 108,000 Buildings 108,000 c. Cash-Modified Disbursement System, Regular 108,000 Miscellaneous income 108,000 d. No entry, Posting to appropriate Registry of Allotments, Obligations and Disbursement Capital Outlays (RAODCO) 6. The retention fee amounting to P500000 is to be released as the end of defects notification period for the bridge constructed by MMD Contractors already lapsed. What is the entry to record the release of retention fee? a. Guaranty/Security Deposits Payable 500,000 Cash-Modied Disbursement System, Trust 500,000 b. Guaranty/Security Deposits Payable 500,000 Cash-Modied Disbursement System, Special 500,000 c. Guaranty/Security Deposits Payable 500,000 Cash-Modied Disbursement System, Regular 500,000 No entry, Posting to appropriate Registry of Allotments, d. Obligations and Disbursements 9. On June 1, the Light Rail Transit purchases new set of train on account at P5,500,000 with credit terms of 3'10, n/30. The agency made payment on July 15 for the full amount. What is the journal entry to recognize the payment of machinery? Ignore tax implication. a. Motor Vehicle 5,335,000 Accounts payable 5,335,000 b. Accounts payable 5,500,000 Cash-Modified Disbursement System, Regular 5.500.000 c. Accounts payable 5,335,000 Cash-Modified Disbursement System, Regular 5.335.000 d. Accounts payable 5,335,000 Other losses 165,000 Cash-Modified Disbursement System, Regular 5,500,000 10. On April 1, 2020, the Philippine Council for Agriculture and Fisheries purchased P500,000 worth of rice from lfugao farmers for sale to customers. On May 15, the rice were sold for P650, 000 with a 15% discount to rice dealers. What is the entry of agency to record the sale of rice? a. Cash-Collecting Ofcers 650,000 Sales Revenue 650,000 Cash-Modied Disbursement System, b. Regular 552,500 Sales Discounts 97,500 Sales Revenue 650,000 Cash-Modied Disbursement System, c. Regular 650,000 Sales Revenue 650,000 d. Cash-Collecting Ofcers 552,500 Sales Discounts 97,500 Sales Revenue 650,000 1. Land Bank of the Philippines granted a loan amounting to P2,500,000 with annual interest of 3% to City of Malabon on January 1, 2020 for their rehabilitation efforts due to Typhoon Bitoy who hits the National Capital Region last year. What is the journal entry of the Land Bank of the Philippines to record the loan granted to City of Malabon? a. Loan Receivable - City of Malabon 2,500,000 Cash-Treasury/Agency Deposit /Trust 2,500,000 b. Loan Receivable - City of Malabon 2,500,000 Cash in Bank-Local Currency, Current Account 2,500,000 Loan Receivable - City of Malabon 2,500,000 Cash-Modified Disbursement System, Regular 2,500,000 d. Loan Receivable - City of Malabon 2,500,000 Subsidy from National Government 2,500,000 2. The Department of Health obtained a loan from Asian Development Bank - a foreign bank to finance the government response in the ongoing pandemic amounting to $20 Billion. What is the journal entry of the Bureau of Treasury to record the receipt of loan proceeds based on the credit advised from Bangko Sentral ng Pilipians? a. Cash in Bank-Foreign Currency, BSP $5,000,000,000 Loan Payable-Foreign $5,000,000,000 b. Cash in Bank-Foreign Currency $5,000,000,000 Credit Cash-Treasury/Agency deposit, Foreign $5,000,000,000 C. Cash in Bank-Local Currency, BSP $5,000,000,000 Loan Payable-Foreign $5,000,000,000 d. Cash in Bank-Local Currency, BSP $5,000,000,000 Credit Cash-Treasury/Agency deposit, Foreign $5,000,000,0003. After months of deliberation, the transfer of cash to the agency's account from a loan to a foreign bank amounting to P10,000,000 is about to proceed. What is the entry to recognize the receipt of loan proceeds based on credit advice from Bangko Sentral ng Pilipinas? a. Subsidy to National Government 10,000,000 Cash in Bank-Foreign Currency, Savings Account 10,000,000 b. Subsidy to National Government 10,000,000 Cash in Bank-Foreign Currency, Bangko Sentral ng Pilipinas 10,000,000 C. Cash in Bank-Foreign Currency, Savings Account 10,000,000 Subsidy to National Government 10,000,000 Cash in Bank-Foreign Currency, Bangko Sentral ng d. Pilipinas 10,000,000 Subsidy to National Government 10,000,000 4. Land Management Bureau remitted P2,000,000 cash to the Bureau of Treasury from its various collections. What is the journal entry of Land Management Bureau to record the remittance of collections to the Bureau of the Treasury? a. Cash-Treasury/Agency Deposit/Trust 2,000,000 Cash-Collecting Officers 2,000,000 b. Cash-Collecting Officers 2,000,000 Due from Land Management Bureau 2,000,000 C. Cash-Treasury/Agency Deposit/Trust 2,000,000 Cash-Modified Disbursement System, Regular 2,000,000 d. Due from Land Management Bureau 2,000,000 Cash-Modified Disbursement System, Regular 2,000,000