Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Chapter 17, Problem 17.1.12P
To determine
Introduction: As per GASB, the accounting for funds of a governmental unit is different from that of private units. Government auditing standards have been developed by U.S. GAO (General Accounting Office) in yellow book named ‘Government Auditing Standards’.
To select: The correct option.
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Entity A is a newly formed government agency. Entity A's transactions and events during the calendar year 20xl are follows:
a. Received appropriation of 500,000
b. Received allotment of 450,000.
c. Incurred obligations amounting to 440,000.
d. Received Notice of Cash Allocation of 430,000.
e. Accrued P80,000 salaries through granting, and liquidation, of cash advance. The breakdown of the salaries is as follows:
Salaries and Wages = 70,000
Personal Economic Relief Allowance (PERA) = 10,000
Gross Compensation = 80,000
Withholding Tax = 18,000
GSIS = 4,000
Pag-IBIG = 1,000
PhilHealth = 2,000
Total Salary Deductions = 25,000
f. Received delivery of purchased office equipment worth 200,000. The equipment has an estimated useful life of 5 years and a 5% residual value. Entity A recognizes monthly depreciation every end of the month using the straight line method. The equipment is acquired on January 1, 20x1.
g. Paid the accounts payable from the purchase of equipment in (f)…
Entity XYZ is a national government agency. Some of the major transactions of the agency for the year 202X were as follows:
1.The approved legislative appropriation for the year was 1 Billion. 10% of this appropriation was alloted by the Department of Budget and Management (DBM) to Entity XYZ.This allotment is broken down as follows:
Capital Outlay 50%
Maintenance and other operating expenses (MOOE) 40%
Personnel Services (PS) 10%
2.Received Notice of Cash Allocation (NCA) from DBM, P20 million,net of tax
3.Obligations were incurred as follows:
Capital Outlay 5million
Obligation for (MOOE) 3million
Personnel Services (PS) 2million
4. Delivery of office equipment and office supplies on account:
office equipment 3million
office supplies 200,000
5.Payable to officers and employees upon approval of payroll:
Salaries and wages P1,000,000
Personnel economic relief allowance(PERA) 150,000
Gross Payroll 1,150,000
Less:Deductions
Withholding Tax P35,000
Government service Insurance…
Munixipality X has been audited and the following findings have been reported:
1. Irregular expenditure of R20 million during the 2019/20 financial year
2. Unauthorised expenditure of R40 billion during the 2019/20 financial year
Discuss the implications and meanings of these audit findings.
Chapter 17 Solutions
Advanced Accounting
Ch. 17 - Prob. 1UTICh. 17 - Prob. 2UTICh. 17 - Prob. 3UTICh. 17 - Prob. 4UTICh. 17 - Prob. 5UTICh. 17 - Prob. 6UTICh. 17 - Prob. 4.1ECh. 17 - Prob. 4.2ECh. 17 - Prob. 4.3ECh. 17 - Prob. 4.4E
Ch. 17 - Prob. 4.5ECh. 17 - Prob. 4.6ECh. 17 - Prob. 4.7ECh. 17 - Prob. 4.8ECh. 17 - Prob. 4.9ECh. 17 - Prob. 4.10ECh. 17 - Prob. 5ECh. 17 - Prob. 6.1ECh. 17 - Prob. 6.2ECh. 17 - Prob. 6.3ECh. 17 - Prob. 6.4ECh. 17 - Prob. 6.5ECh. 17 - Prob. 6.6ECh. 17 - Prob. 7ECh. 17 - Prob. 17.1.1PCh. 17 - Prob. 17.1.2PCh. 17 - Prob. 17.1.3PCh. 17 - Prob. 17.1.4PCh. 17 - Prob. 17.1.5PCh. 17 - Prob. 17.1.6PCh. 17 - Prob. 17.1.7PCh. 17 - Prob. 17.1.8PCh. 17 - Prob. 17.1.9PCh. 17 - Prob. 17.1.10PCh. 17 - Prob. 17.1.11PCh. 17 - Prob. 17.1.12PCh. 17 - Prob. 17.3PCh. 17 - Prob. 17.4PCh. 17 - Prob. 17.5PCh. 17 - Prob. 17.7PCh. 17 - Prob. 17.8PCh. 17 - Prob. 17.9PCh. 17 - Prob. 17.11.1PCh. 17 - Prob. 17.11.2PCh. 17 - Prob. 17.11.3PCh. 17 - Prob. 17.12.1PCh. 17 - Prob. 17.12.2P
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