Entity A is a newly formed government agency. Entity A's transactions and events during the

calendar year 2020 are as follows:

a. Received appropriation of P5M.

b. Received allotment of P4M.

c. Entity A enters into the following contracts:

Employment contracts - P1,000,000

Purchase of Office Equipment -P1,500,000

Purchase of Office Supplies - P600,000

Contacts for various MOOEs - P400,000

d. Receipt of Notice of Cash Allocation - P2,500,000.

e. Accrued P800,000 salaries upon approval of payroll, including granting of cash advance

and liquidation thereof. The breakdown of salaries are as follow:

Salaries & Wages 750,000

Personal Economic Relief Allowance (PERA) 50,000

Gross Compensation 800,000

Withholding Tax 100,000

GSIS 50,000

Pag-IBIG 30,000

PhilHealth 20,000

Total Salary Deductions 200,000

f. Received delivery of purchased office equipment worth P1,200,000 on account.

g. Received delivery of purchased office supplies worth P500,000 on account.

h. Payment of P1,400,000 accounts payable. Taxes withheld amount to P150,000.

i. Issued office supplies worth P350,000 to end users.

j. Payment for the following expenses:

Water 60,000

Elecricity 80,000

Telephone 30,000

Janitorial 50,000

Security 80,000

Total 300,000

Less: Withholding Tax 80,000

Net 220,000

k. Billed revenue for Permit & Registration Fees amounting to P1,500,000.

l. Collected P1,000,000 from billed revenue and remitted P900,000 to the BTr.

m. Remitted all taxes withheld to the BIR.

n. Remitted all contributions to GSIS, PhilHealth and Pag-IBIG.

Adjustments:

1. Reversion of unused NCA.

2. The office equipment has an estimated life of 10 years and a 10% residual value.

The equipment is acquired on January 1, 2020.

3. Allowance for impairment of accounts receivable is 5% of the outstanding balance.

Requirements:

1. Record the transactions above. If no journal entry is needed, state the registry or other document

where the transaction is to be recorded.

2. Post the transactions in the ledger. (Use T-accounts)

3. Prepare the unadjusted trial balance.

5. Prepare worksheet.

6. Prepare closing entries.

7. Prepare the following financial statements:

Statement of Financial Performance

Statement of Financial Position