ABC Corp had a cash balance of P500,000 in its books at Dec 31. The following are additional information for the entity: Cash in BDO, P200,000 (compensating balance of P50,000 is legally restricted) Cash in BPI, (P2,000) deducted from the balance Cash on hand, P10,000 (includes post dated check of P6,000) Petty Cash Fund, P5,000 (includes petty cash voucher of P1,500) The adjusting entry related to cash at Dec 31 would include: Cr Expenses 1,500 Cr Cash 7,500 Cr Cash 9,500 Cr Receivables 6,000
ABC Corp had a cash balance of P500,000 in its books at Dec 31. The following are additional information for the entity: Cash in BDO, P200,000 (compensating balance of P50,000 is legally restricted) Cash in BPI, (P2,000) deducted from the balance Cash on hand, P10,000 (includes post dated check of P6,000) Petty Cash Fund, P5,000 (includes petty cash voucher of P1,500) The adjusting entry related to cash at Dec 31 would include: Cr Expenses 1,500 Cr Cash 7,500 Cr Cash 9,500 Cr Receivables 6,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Corp had a cash balance of P500,000 in its books at Dec 31. The following are additional information for the entity: Cash in BDO, P200,000 (compensating balance of P50,000 is legally restricted) Cash in BPI, (P2,000) deducted from the balance Cash on hand, P10,000 (includes post dated check of P6,000) Petty Cash Fund, P5,000 (includes petty cash voucher of P1,500) The adjusting entry related to cash at Dec 31 would include:
Cr Expenses 1,500
Cr Cash 7,500
Cr Cash 9,500
Cr Receivables 6,000
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