Reference no: EM132779279

Problem 1: Journalize the following selected transactions of a municipality:

1. Received the Notice of Funding Check Issued from DBM for the share of the municipality for internal revenue collections, P50,000,000.

2. Collected receivables for real property taxes , P10,000,000 and special education tax, P10,000,000 from various taxpayers. (Real property tax and special education tax are both based on 2% of the assessed values of real property.)

3. Deposited the total collections to LANDBANK.

4. Paid MERALCO bill of P67,200, less tax.

5. Purchased office supplies on account from National Company, a VAT registered supplier, P20,000.

6. Paid the bills for the following: PLDT landline -P33,600; GLOBE cel-P22,400.

7. Collected real property tax and special education tax, assessed value of real property is P150,000,000, from new taxpayers.

8. Deposited the total collections to LANDBANK.

9. Paid the account with National Company, net of tax.

10. Received the credit memo from the bank for its share of internal revenue collections, P30,000,000.

11. Collected P200,000 from Income from market operations.

12. Collected permit fees, P150,000, and garbage fees, P50,000.

13. Deposited the total collections from above receipts to LANDBANK.

14. Distributed the total amount of real property tax collected based on the following sharing: Municipality-40%; Province-35%; Barangay-25%

15. Remitted the share due to Province and Barangays for real property tax.

16. Setting up of the estimated receivables on real property tax, P10,000,000 and special education tax.

17. Collection of receivable on real property tax, P1,000,000 and P1,000,000 special education tax.

18. Distribution of real property tax: Municipality-40%, Province-35%, Barangay-25%.

19. Deposited total collections for real property and special education tax.

20. Remittance of Share due to Provinces and Barangays for real property tax collected.

21. Garbage fees collected, P150,000

22. Received income from the operations of the following utilities: Markets, P100,000 Hospitals, P200,000 Cemeteries, P50,000 Slaughterhouses, P30,000

23. Collected permit fees, P50,000; registration fees, P20,000 and other local taxes, P30,000.

24. Deposited receipts and collections amounting to P630,000.

25. Receipt of Notice of Funding Check Issued from the DBM for Internal Revenue Allotment, P5,000,000