Hereunder is the Unadjusted Trial Balance of the DOT as of December 31, 2015 Account Title Debit

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Question:

Hereunder is the Unadjusted Trial Balance of the DOT as of December 31, 2015

Account Title Debit Credit

Cash – Treasury/Agency Deposit, Reg 100,000

Cash - MDS, Regular 180,000

Cash – TRA 70,000

Due from Officers and Employees 20,000

Office Supplies Inventory 450,000

Prepaid rent 360,000

Prepaid insurance 120,000

Building 11,000,000

Office equipment 4,000,000

Accum. Dep’n – Building 1,500,000

Accum. Dep’n – Equipment 450,000

Accounts Payable 1,500,000

Guaranteed/Deposit Payable 350,000

Accumulated Surplus/Deficit 7,640,000

Other Business Income 300,000

Rent income 200,000

Subsidy from National Government 8,000,000

Salaries and wages – Regular 2,670,000

PERA 220,000

Travelling expenses 200,000

Fuel, oil and lubricants 200,000

Electricity 350,000

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Total P19,940,000 P19,940,000

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Adjustments:

A. A collection per OR#1032 amounting to P345 was recorded as P435 in the books. But the deposit was correctly recorded.

B. Prepaid Rent covered the period June 1, 2019, to May 31, 2020.

C. Uncollected Rent Income – P25,000.

D. An immediate investigation was conducted by the auditor to a collecting officer of DOT since the office was ransacked and resulted to a loss of cash from its collection totaling P150,000. Immediately the officer reported to a nearby police station and blotter the incident. During the investigation, the collecting officer was questioned why did he had not deposit his collections. The said officer requested for relief from cash accountability. But the investigation noted that there is negligence committed and left the office with his collections just put inside his unlocked drawer justifying that he always do that practice and no same incident happened. So the request was denied.

Give the journal entry for the amount lost upon receipt of the decision in order to establish the receivable account from the collecting officer.
The journal entries when his request was denied. It was already final and executory. He settled his accountability.

E. Transportation expenses charged to the petty cash fund in the amount of P2,000 were obligated but erroneously recorded to Fuel, oil and lubricants..

F. Liquidation of travel cash advance of P12,000 was erroneously credited to Guaranteed Deposit Payable account.

G. Remittance to BIR was erroneously recorded to Cash – Treasury/Agency Deposit, Reg amounting to P70,000.

H. Accounts Payable includes P15,000 which has been in books for over two years. This pertains to repairs and maintenance of IT equipment.

I. Total office supplies used in operation amounted to P125,000.

J. Insurance paid during the period was effective, from October 1, 2019, until September 30, 2020 or for one year period.

K. A seminar fee of P20,000 was included in the cash advance for travel, however, the liquidation should be that the seminar fee was recorded all to traveling expenses.

REQUIREMENT: