Reference no: EM133021602
Question - The Municipality of Loboc has the following data for the calendar year 20X1:
Annual Budget
Estimates of Income Appropriations
Tax Revenue:
Basic Real Property Tax P10,000 Personal Services P6,000
Business Tax 5,000 Maintenance and Other Operating Expenses 10,000
Share from National Taxes: Capital Outlay 18,000
Share from Internal Revenue Collection 30,000 20% Development Fund 6,000
Total: P45,000 Total: P45,000
It releases the following allotments:
Personal Services P4,000
Maintenance and Other Operating Expenses 7,000
Capital Outlay 13,000
20% Development Fund 6,000
Total P30,000
Its realized estimates of income for the year are:
Tax Revenue
Basic Real Property Tax P6,000
Business Tax 3,000
Share from National Taxes
Share from Internal Revenue Collection 30,000
'P39,000
It has the following current obligations based on Certifications on Appropriations, Funds, and Obligation of Allotment (CAFAO).
Personal Services P3,000
Maintenance and Other Operating Expenses 4,000
Capital Outlay 10,000
20% Development Fund 6,000
Total P23,000
It recorded the following consummated obligations:
Personal Services P2,500
Maintenance and Other Operating Expenses 4,000
Capital Outlay 8,500
20% Development Fund 6,000
Total P21,000
Required -
a. Prepare the all necessary adjusting entries.
b. Prepare the post-closing trial balance.
c. Prepare the table for the computation of over and underestimation.
d. Prepare the entries to record the adjustment for the over and underestimates.