Accounting for Government and Non-Profit Organization 1. Y Agency held a financial asset at fair value through surplus or deficit worth P200,000. The agency alsopaid a P5,000 transaction cost.Required: Prepare the entries to be made by the agency.2.Assume instead that Y Agency held a financial asset other than fair value through surplus or deficit, forexample, an investment in foreign treasury bonds.Required: Prepare the entries to be made by the agency.3. An agency purchased a threshing machine on account at P250,000, with credit terms of 2/10, n/30. Assumea 2% withholding tax.Required: Prepare the entries to be made by the agency:At the date of acquisition.At the date of payment, assuming the agency pays within the discount period.At the date of payment, assuming the agency pays beyond the discount period.

As per IFRS 9 "Financial Instruments", an organization shall measure a financial asset or financial…

Answered: Required: Prepare the entries to be…

Business

Accounting

Required: Prepare the entries to be made by the agency.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Accounting for Government and Non-Profit Organization

1. Y Agency held a financial asset at fair value through surplus or deficit worth P200,000. The agency also
paid a P5,000 transaction cost.
Required: Prepare the entries to be made by the agency.
2.
Assume instead that Y Agency held a financial asset other than fair value through surplus or deficit, for
example, an investment in foreign treasury bonds.
Required: Prepare the entries to be made by the agency.
3. An agency purchased a threshing machine on account at P250,000, with credit terms of 2/10, n/30. Assume
a 2% withholding tax.
Required: Prepare the entries to be made by the agency:
At the date of acquisition.
At the date of payment, assuming the agency pays within the discount period.
At the date of payment, assuming the agency pays beyond the discount period.

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