PROBLEM 1Argentina Company reported the following accounts on December 31, 2020:Cash on handPetty cash fundSecurity bank current accountPNB current accountBDO current account (overdraft)BSP treasury bill - 120 daysBPI time deposit - 90 daysBond sinking fundP1,000,00050,0002,000,0001,500,000(200,000)3,000,0002,000,0002,500,000• The cash on hand included a customer postdated check of P150,000 and postal money orderof P50,000.• The petty cash fund included unreplenished petty cash vouchers for P10,000 and anemployee check for P5,000 dated January 31, 2021.• The BPI time deposit is set aside for acquisition of land to be made in early January 2021.• The bond sinking fund is set aside for payment of bond payable due December 31, 2021.Required:1. Prepare adjusting entries on December 31, 2020.2. Compute the total amount of cash and cash equivalents.3. Explain the presentation of the items excluded from cash and cash equivalents.

Journal is the book of original entry in which all the financial transactions of the business are…

Argentina Company reported the following accounts on December 31, 2020: Cash on hand Petty cash fund Security bank current account PNB current account BDO current account (overdraft) BSP treasury bill - 120 days BPI time deposit - 90 days Bond sinking fund P1,000,000 50,000 2,000,000 1,500,000 (200,000) 3,000,000 2,000,000 2,500,000 • The cash on hand included a customer postdated check of P150,000 and postal money order of P50,000. The petty cash fund included unreplenished petty cash youchers for P10.000 and an

Argentina Company reported the following accounts on December 31, 2020: Cash on hand Petty cash fund Security bank current account PNB current account BDO current account (overdraft) BSP treasury bill - 120 days BPI time deposit - 90 days Bond sinking fund P1,000,000 50,000 2,000,000 1,500,000 (200,000) 3,000,000 2,000,000 2,500,000 • The cash on hand included a customer postdated check of P150,000 and postal money order of P50,000. The petty cash fund included unreplenished petty cash youchers for P10.000 and an

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

PROBLEM 1
Argentina Company reported the following accounts on December 31, 2020:
Cash on hand
Petty cash fund
Security bank current account
PNB current account
BDO current account (overdraft)
BSP treasury bill - 120 days
BPI time deposit - 90 days
Bond sinking fund
P1,000,000
50,000
2,000,000
1,500,000
(200,000)
3,000,000
2,000,000
2,500,000
• The cash on hand included a customer postdated check of P150,000 and postal money order
of P50,000.
• The petty cash fund included unreplenished petty cash vouchers for P10,000 and an
employee check for P5,000 dated January 31, 2021.
• The BPI time deposit is set aside for acquisition of land to be made in early January 2021.
• The bond sinking fund is set aside for payment of bond payable due December 31, 2021.
Required:
1. Prepare adjusting entries on December 31, 2020.
2. Compute the total amount of cash and cash equivalents.
3. Explain the presentation of the items excluded from cash and cash equivalents.

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