Agency MNO

Pre-Closing Trial Balance

For the Year Ended December 31. 2015

PARTICULARS
Cash-Collecting Officers
Petty Cash Fund 700,000
Cash- National Treasury - MDS 3,000,000
Cash in Bank-Local Currency-Current Account 1,600,000
Accounts Receivable 240,000
Allowance for Doubtful Accounts 40,000
Office Supplies Inventory 30,000
Other Current Assets 60,000
Investment in Stocks 800,000
Land 1,200,000
Office Buildings 1,300,000
Accumulated Depreciation - Office Building 100,000
Office Equipment 500,000
Accumulated Depreciation - Office Equipment 40,000
Furniture & Fixtures 220,000
Accumulated Depreciation - Furniture & Fixtures 20,000
IT Equipment and Software 380,000
Accumulated Depreciation - IT Equipment and Software 50,000
Accounts Payable 370,000
Due to BIR 100,000
Due to GSIS 60,000
Due to PAG-IBIG 50,000
Due to Philhealth 50,000
Other Payables 30,000
Government Equity 8,140,000
Subsidy from National Government 3,400,000
Salaries and Wages - Regular 640,000
Personnel Economic Relief Assistance (PERA) 160,000
Retirement and Life Insurance Premiums 120,000
PAG-IBIG Contributions 20,000
PHILHEALTH Contributions 20,000
Travelling Expense-Local 150,000
Office Supplies Expense 120,000
Electricity Expense 70,000
Telephone Expenses-Landline 90,000
Janitorial Services Expenses 70,000
Security Expenses 60,000
Repairs and Maintenance-Office Building 130,000
Depreciation-Office Building 30,000
Depreciation-Office Equipment 20,000
Depreciation-Furniture & Fixtures 10,000
Depreciation-IT Equipment and Software 10,000
TOTAL 12,450,000 12,450,000

Pre-Closing Trial Balance 2 | P a g e

 Adjusting Entries for the Year 2015
PARTICULARS ACCT. CODE DEBIT CREDIT
Depreciation - Office Building 50501040 100,000
Depreciation - Office Equipment 50501050 30,000
Depreciation - Furniture & Fixtures 50501070 12,000
Depreciation - IT Equipment and Software 50501050 28,000
Accumulated Depreciation - Office Building 10604011 100,000
Accumulated Depreciation - Office Equipment 10605011 30,000
Accumulated Depreciation - Furniture & Fixtures 10607011 12,000
Accumulated Depreciation - IT Equipment and Software 10605031 28,000
To adjust the recorded depreciation

Impairment Loss - Loans and Receivables 50503020 24,000

Allowance for Impairment - Accounts Receivables 10301011 24,000
To record Allowance for Impairment - Accounts Receivable

Closing Entries for the Year 2015

PARTICULARS ACCT. CODE DEBIT CREDIT
Subsidy from National Government 40301010 3,400,000
Revenue and Expense Summary 30301010 3,400,000
To close used Subsidy from National Government to Revenue and Expense Summary

Revenue and Expense Summary 30301010 1,914,000

Salaries and Wages-Regular 50101010 640,000
PERA 50102010 160,000
Life and Retirement Insurance Contribution 50103010 120,000
PAG-IBIG Contributions 50103020 20,000
PhilHealth Contributions 50103030 20,000
Travelling-Expenses-Local 50201010 150,000
Office Supplies Expense 50203010 120,000
Electricity Expense 50204020 70,000
Telephone Expense-Landline 50205020 90,000
Janitorial Services Expenses 50212020 70,000
Security Services Expense 50212030 60,000
Repairs and Maintenance-Office Building 50205020 130,000
Depreciation-Office Building 50501040 130,000
Depreciation-Office Equipment 50501050 50,000
Depreciation-Furnitures and Fixtures 50501070 22,000
Depreciation-IT Equipment and Software 50501050 38,000
Impairment Loss - Loans and Receivables 50503020 24,000
To close expense/loss acccounts to Revenue and Expense Summary

Revenue and Expense Summary 30301010 1,486,000

Accumulated Surplus/Deficit 30101010 1,486,000
To close Revenue and Expense Summary to Accumulated Surplus/Deficit

Adjusting and Closing Entries for the year 2015 3 | P a g e

 Agency MNO
Detailed Statement of Income and Expenses
For the Year Ended 2015

REVENUE 0

LESS OPERATING EXPENSES

Personnel Services
Salaries and Wages- Regular 50101010 640,000
Personal Economic Relief Allowance 50102010 160,000
Life and Retirement Insurance Premium 50103010 120,000
PAG – IBIG Contributions 50103020 20,000
PhilHealth Contribution 50103030 20,000
Total Personnel Services 960,000

Maintenance and Other Operating Expenses

Travelling Expenses-Local 50201010 150,000
Office Supplies Expense 50203010 120,000
Electricity Expense 50204020 70,000
Telephone Expenses- Landline 50205020 90,000
Janitorial Services Expense 50212020 70,000
Security Services Expense 50212030 60,000
Repairs and Maintenance – Office Building 50213040 130,000
Total Maintenance and Other Operating Expenses 690,000

Non – Cash Expenses

Depreciation – Office Building 50501040 130,000
Depreciation – Office Equipment 50501050 50,000
Depreciation – Furniture and Fixtures 50501070 22,000
Depreciation – IT Equipment and Software 50501050 38,000
Impairment Loss - Loans and Receivables 50503020 24000
Total Non-Cash Expenses 264,000

TOTAL CURRENT OPERATING EXPENSES 1,914,000

SURPLUS/(DEFICIT) FROM CURRENT OPERATION (1,914,000)

Financial Assistance from NGAs

Subsidy from National Government Agency 40301010 3,400,000
TOTAL FINANCIAL ASSISTANCE FROM NGAS 3,400,000

SURPLUS/(DEFICIT) FOR THE PERIOD 1,486,000

Detailed Statement of Income and Expenses for the Year 2015 4 | P a g e

 Agency MNO
Detailed Statement of Financial Position
As of December 31, 2015

ASSETS

Current Assets
Cash and Cash Equivalents 6,000,000
Cash-Collecting Officers 10101010 700,000
Petty Cash 10101020 700,000
Cash-National Treasury-Modified Disbursement System 10104040 3,000,000
Cash in Bank-Local Currency-Current Account 10102020 1,600,000

Receivables 176,000
Accounts Receivable 10301010 240,000
Allowance for Impairment - Accounts Receivable 10301011 -64,000

Inventories 30,000
Office Supplies Inventory 10404010 30,000

Other Current Assets 19999990 60,000

Total Current Assets 6,266,000

Non-Current Assets
Investment 800,000
Investment in Stocks 10203010 800,000

Property, Plant and Equipment 3,220,000

Land 10601010 1,200,000
Office Building 10604010 1,300,000
Less: Accumulated Depreciation - Office Building 10604011 200,000
Book Value 1,100,000
Office Equipment 10605020 500,000
Less: Accumulated Depreciation – Office Equipment 10605011 70,000
Book Value 430,000
Furniture and Equipment 10607010 220,000
Less: Accumulated Depreciation – Furniture and Fixture 10607011 32,000
Book Value 188,000
IT Equipment and Software 10605030 380,000
Less: Accumulated Depreciation – IT Equipment and Software 10605031 78,000
Book Value 302,000

Detailed Statement of Financial Position for the Year 2015 5 | P a g e

Total Non-Current Assets 4,020,000

TOTAL ASSETS 10,286,000

LIABILITIES AND EQUITY

Liabilities
Current Liabilities:
Financial Liabilities 370,000
Accounts Payable 20101010 370,000

Inter-Agency Payables 260,000

Due to BIR 20201010 100,000
Due to GSIS 20201020 60,000
Due to PAG-IBIG 20201030 50,000
Due to PhilHealth 20201040 50,000

Total Current Liabilities 630,000

Non-Current Liabilities
Other Payables 30,000
Other Payables 29999990 30,000

Total Non-Current Liabilities 30,000

TOTAL LIABILITIES 660,000

Net Assets/Equity
Government Equity 9,626,000

TOTAL LIABILITIES AND EQUITY 10,286,000

Detailed Statement of Financial Position for the Year 2015 6 | P a g e

 Journal Entries for the Transactions Occurred in the Year 2016

PARTICULARS ACCT. CODE DEBIT CREDIT

Cash-National Treasury-Modified Disbursement System 10104040 23,085,000
Subsidy from National Government 40301010 23,085,000
To record receipt of NCA net of TRA

Office Equipment 10605020 120,000

Accounts Payable 20101010 120,000
To record receipt of charge invoice for Office Equipment acquired

Advances for Payroll 19901020 640,000

Cash-National Treasury-Modified Disbursement System 10104040 640,000
To record grant of cash advance for payroll

Salaries and Wages-Regular 50101010 600,000

Personal Economic Relief Allowance 50102010 40,000
Due to BIR 20201010 192,000
Due to GSIS 20201020 72,000
Due to PAG-IBIG 20201030 18,000
Due to Philhealth 20201040 67,500
Due to Officers and Employees 20101020 290,500
To record Due to Officers and Employees and to set up salary deductions

Due to Officers and Employees 20101020 290,500

Advances for Payroll 19901020 290,500
To record liquidation of Advances for Payroll

Due to BIR 20201010 192,000

Due to GSIS 20201020 72,000
Due to PAG-IBIG 20201030 18,000
Due to Philhealth 20201040 67,500
Advances for Payroll 19901020 349,500
To record remittance of salary deductions

Retirement and Life Insurance Premiums 50103010 72,000

PAG-IBIG Contributions 50103020 18,000
Philhealth Contributions 50103030 67,500
Employees Compensation Insurance Premiums 50103040 2,000
Cash-National Treasury-Modified Disbursement System 159,500
To record remittance of government’s share

Electricity Expense 50204020 180,000

Telephone Expenses-Landline 50205020 168,000
Accounts Payable 20101010 120,000
Due to BIR 20201010 12,000
Cash-National Treasury-Modified Disbursement System 10104040 456,000
To record payment of bills from utility companies and accounts payable for Office Equipment acquired

Cash-Tax Remittance Advice 10104070 12,000

Subsidy from National Government 40301010 12,000
To record receipt of NCA for TRA

Journal Entries for the Transactions Occurred in the Year 2016 7 | P a g e

Due to BIR 20201010 12,000
Cash-Tax Remittance Advice 10104070 12,000
To record remittance of tax withheld through TRA

Cash-Collecting Officers 10101010 1,640,000

Sales Revenue 40202160 800,000
Miscellaneous Income 40609990 240,000
Permit Fees 40201010 600,000
To record collection of income and other receipts

Cash-Treasury/Agency Deposit, Regular 10104010 1,640,000

Cash-Collecting Officers 10101010 1,640,000
To record deposit of collected income and other receipts

IT Equipment and Software 10801020 120,000

Accounts Payable 20101010 120,000
To record receipt of computers

IT Equipment and Software 10801020 30,000

Accounts Payable 20101010 30,000
To record receipt of IT Software

Petty Cash 10101020 60,000

Cash-National Treasury-Modified Disbursement System 10104040 60,000
To record establishment of Petty Cash Fund for official local travel of employees

Travelling Expenses-Local 50201010 60,000

Petty Cash 10101020 60,000
To record local travelling expenses

Rent Expenses 50299050 45,000

Cash-National Treasury-Modified Disbursement System 10104040 45,000
To record payment of rent for the last quarter

Repairs and Maintenance-Office Building 50213040 400,000

Accounts Payable 20101010 400,000
To record acquisition of materials for the general repairs of Office Building

Accounts Payable 20101010 400,000

Cash-National Treasury-Modified Disbursement System 10104040 400,000
To record full payment of materials acquired

Advances for Payroll 19901020 150,000

Due to BIR 20201010 15,000
Cash-National Treasury-Modified Disbursement System 10104040 135,000
To record the payment of the payroll

Due from NGAs 10303010 350,000

Cash-National Treasury-Modified Disbursement System 10104040 350,000
To record the transfer of cash to an Implementing Agency for a reforestation project

Journal Entries for the Transactions Occurred in the Year 2016 8 | P a g e

Cash-Tax Remittance Advice 10104070 15,000
Subsidy from National Government 40301010 15,000
To record receipt of NCA for TRA

Due to BIR 20201010 15,000

Cash-Tax Remittance Advice 10104070 15,000
To record remittance of tax withheld through TRA

Land Improvements, Reforestation Projects 10602020 350,000

Due from NGAs 10303010 350,000
To record the submission of report by the Implementing Agency after the completion of the project

Due from Officers and Employees 10305020 8,000

Cash-Collecting Officers 10101010 8,000
To record the cash shortage of the Cash Collecting Officer

Depreciation Expense-Office Building 50501040 130,000

Depreciation Expense-Office Equipment 50501050 62,000
Depreciation Expense-Furnitures and Fixtures 50501070 22,000
Depreciation Expense-IT Equipment and Software 50501050 53,000
Depreciation Expense-Land Improvements 50501020 35,000
Accumulated Depreciation-Office Building 10604011 130,000
Accumulated Depreciation-Office Equipment 10605021 62,000
Accumulated Depreciation-Furnitures and Fixtures 10607011 22,000
Accumulated Depreciation-IT Equipment and Software 10605031 53,000
Accumulated Depreciation-Land Improvements 10602021 35,000
To record year-end depreciation

Impairment Loss - Loans and Receivables 50503020 24,000

Allowance for Impairment - Accounts Receivable 10301011 24,000
To record allowance for uncollectible accounts

Journal Entries for the Transactions Occurred in the Year 2016 9 | P a g e