518 Reviewers 3

Review questions: 1. For numbe numbers rs 1-3 refer refer to to the followin following g informatio information: n: The duly approved ABM for the F !"13 showed the following: Allotment Appropriatio Not Needing Needing Clearance Class n Clearance #$ !1%"""%""" 1&%"""%""" 3%"""%""" M''( 1)%"""%""" 1"%"""%""" )%"""%""" *apital 'utlay 13%"""%""" 1"%"""%""" 3%"""%"""  Total  Total # +,%"""%""" # 3&%"""%""" # 11%"""%""" The orres orresponding ponding otie of *ash *ash Alloation /*A0 was issued by the the epartment epartment of Budget Budget and Management. 'ne of the transations transations during the 2rst uarter of the year inluded the payment of salaries and allowanes thru ash advanes: $alaries and 4ages #(5A 4ithholding Ta6 5etirement and 9ife nsurane #ag-B; #hil A. 1&%"""%""" *. 3%"""%""" B. )%3)"%""" . !1%"""%""" !. A. !"%)&" !"%)&"%"" %""" " ? 1!%3)" 1!%3)"%"" %""" " B. 1"%"""%""" ? )%"""%""" *. 1"%"""%""" ? 1"%"""%""" . 18%1"" 18%1""%"" %""" " ? ,%)""% ,%)""%""" """ 3. A. 5etirement and 9ife nsurane *ontribution 66 #ag-B; *ontribution 66 #hilhealth *ontribution 66 (** *ontribution 66 *ash @M$% 5egular 66 B. 5etirement and 9ife nsurane *ontribution 66 #ag-B; *ontribution 66 #hilhealth *ontribution 66 (** *ontribution 66 *ash @ isbursing 'er 66 *. ue to ;$$ 66 ue to #ag-B; 66 ue to #hilhealth 66 'ther #ayables 66 *ash @ T% M$ 66 . ue to ;$$ 66 ue to #ag-B; 66 ue to #hilhealth 66 'ther #ayables 66 *ash @ isbursing 'er 66

). The Ageny paid a (*' bill amounting to #+"%"""% inluding ta6 of 3%""". The entry to reord this transation would be: A. (letriity +"%""" *ash @ T% M$ +"%""" B. Aounts #ayable +"%""" *ash @ T% M$ 38%""" ue to B5 3%""" *. Memo entry only. . o entry reuired. 7. n what registry should allotment for purhases of T euipment be reorded> A. 5A'-#$ B. 5A'-M' *. 5A'-*' . 5A'-F( For uestions 8-11% refer to the following problem: Allotment in the amount of #)%)""%""" was released by the BM with the orresponding *A. The release was for the onstrution of an oe building. The '$T awarded the ontrat to AB* *onstrution *ompany for a ontrat prie of #)%"""%""". AB* paid the reuired ash bond while '$T issued a heC to over the mobiliDation fee. The billings are shown as follows: 1st Billing 3)E ompleted /1"E retention fee0 !nd Billing &"E ompleted /1"E retention fee0 Final Billing 1""E ompleted /1"E retention fee0 8. A. )%"""%""" *. +%8)"%""" B. )%)""%""" . )%!!)%""" &. 4hat is the ournal entry to reord the mobiliDation fee> A. Advanes to *ontrators !)"%""" *ash @ M$% 5egular !)"%""" B. Advanes to *ontrators 8)"%""" *ash @ M$% 5egular 8)"%""" *. Advanes to *ontrators !)"%""" #erfGBidGBB# !)"%""" . Advanes to *ontrators 8)"%""" #erfGBidGBB# 8)"%""" ,. For the 2rst billing% how muh should be redited to ;uarantee $eurityGeposits #ayable> A. )""%""" *. 1,!%)"" B. 18)%""" . !7!%)"" 1". A. !%+8)%""" *. !%!)"%""" B. 1%8)"%""" . !%1)"%""" 11. A. #338%)"" *. #7""%""" B. #!7!%)"" . # 1)"%""" 1!. Ageny A* sold a 7"E depreiated motor vehile whih had an original ost of #3""%""" for #!""%""". The proeeds shall be deemed automatially appropriated for the purhase of  replaement higher apaity vehile worth #)""%"""% net of appliable ta6. The ageny subseuently reeived an *A of #)""%""" for the purhase of the said vehile. 4hat is the entry to reord the reeipt from the disposal of the motor vehile> A. *ash @ *olleting 'er !""%""" ue to BTr !""%""" B. *ash @ *olleting 'er !""%""" ;ain on $ale of isposed Assets !""%""" *. *ash @ *olleting 'er !""%""" Aumulated epHn. @ ehiles 1)"%""" Motor ehiles 3""%""" ue to BTr )"%""" . *ash @ *olleting 'er !""%""" Aumulated epHn. @ ehiles 1)"%""" Motor ehiles 3""%""" ;ain on $ale of isposed Assets )"%"""

13. Ageny I have an obligation for euipment per purhase order amounting to #&""%""". $ubseuently% the ageny liuidates the euipment auired in full. The auisition was provided from the #rourement $erie. The entry to reord this transation would be: a. Memorandum entry in 5A'*' b. 'e (uipment &""%""" ue from ;A &""%""" . $ubsidy from ational ;ovHt &""%""" *ash @ M$% 5egular &""%""" d. Aounts #ayable &""%""" *ash @ M$% 5egular &""%""" 1+. The ageny obligates the purhase of euipment per purhase order amounting to #!""%""". The entry for this transation would be: A. Memo entry only B. 'e (uipment !""%""" Aounts #ayable !""%""" *. 'e (uipment !""%""" *ash-ational Treasury% M$ !""%""" . 'e (uipment !""%""" $; !""%""" 1). 4hat is the proforma entry to reord the anellation of a stale M$ heC> A. *ash @ M$ 66 Aounts #ayable 66 B. *ash @ M$% 5egular 66 *ash @ *olleting 'er 66 *. *ash @ M$% 5egular 66 Aumulated $urplus 66 . *ash @ *olleting 'er 66 Aumulated $urplus 66 For items 17 and 18  A ash advane was set up to over the payment of salaries of employees in the amount of #&"%""".  The ash advane was liuidated during the year. A weeC after the payment% the booCCeeper found out that the employees were overpaid by #!%""". $ubseuently% the booCCeeper noti2ed the onerned employees of said overpayment and reuested for the refund. 17. 4hat is the ournal entry to reord the remittane of the overpayment to the ational Treasury> a. $ubsidy from ational ;overnment !%""" *ash @ M$% 5egular !%""" b. $ubsidy from ational ;overnment !%""" *ash @ *olleting 'er !%""" . *ash @ M$% 5egular !%""" ue from 'ers and (mployees !%""" d. $ubsidy from ational ;overnment !%""" ue from 'ers and (mployees !%""" 18. 4hat is the ournal entry to reord the overpayment> a. ue from 'ers and (mployees !%""" . *onsolidation priniples . Aounting for long-term investments . Adoption of poliy on inreasing bene2t entitlements of the program members . All hanges in lassi2ation of aounts a. % %  only *.  and  only b.  and  only . All must be dislosed in the otes to F$

n answering numbers 1-1"% refer to the following hoies: a. The 2rst statement is true but the seond statement is false. b. The 2rst statement is false but the seond statement is true. . Both statements are true. d. either of the statements is true. 1. $1: ;eneral inome aounts of the government enompass all ta6es imposed on inome% properties and use or sale of goods and servies% ta6es on international trade and transations and other ta6es inluding 2nes and penalties. $!: $pei2 inome aounts of the government inlude all types of revenue or inome generated by agenies in the e6erise of their administrative and regulatory funtion% inome from publi entities or inome from investments and inome from grants and donations. !. $1: A prelosing trial balane is prepared after adusting entries are reorded in the general  ournal and posted to the general ledger and shows the adusted balanes of all aounts. $!: The statement of 2nanial position is prepared from information taCen diretly from the prelosing trial balane. 3. $1: The Budgetary aounts onsist of appropriations% obligations and disbursements. $!: Budgetary aounts are reorded in the agenyHs booCs of aounts. +. $1: The *A is the share of the Ageny in the inome of the ational ;overnment. $!: The otie of *ash Alloation reeived by the ageny is net of the )E ta6 for #ersonal $ervies and &E ta6 for Maintenane and 'ther 'perating (6penses and *apital 'utlays to be withheld by the ageny. ). $1: The entry to reord the auisition of a 26ed asset using the prourement arm of the BM will inlude a debit to the orresponding 26ed asset auired.

$!: 4hen a government ageny deides to purhase supplies from outside suppliers% the entry to reord the reeipt of the supplies will most liCely inlude a redit to *ash-ational Treasury% M$. 7. $1: Aording to Administrative 'rder o. 11,% the responsibility for the 2sal operations of  oes and agenies of government is hereby delared to reside primarily with the respetive