Armenia Company reported the following information on December 31, 2020: 1,000,000 Cash on hand Petty cash fund" Cash in bank 50,000 4,000,000 2,000,000 Saving deposit 7,050,000 Cash on hand included the following: a. Customer check of P100,000 returned by bank December 26, 2020 due to insufficient fund but subsequently redeposited and cleared by bank January 5, 2021. b. Customer check for P150,000 dated January 15, 2021 received December 22, 2020. c. Postal money orders received from customers, P200,000. The petty cash fund consisted of the following items: Currency and coins Employees' IOUS Currency in envelope marked collections for Christmas party Check drawn by Armenia payable to petty cashier 2,000 10,000 5,000 33,000 50,000 Check written and dated December 22, 2020 and delivered to payee on January 5, 2021, P200,000. Check written December 26, 2020 and dated January 31, 2021 delivered to payee on December 26, 2020, P300,000. Required: 1. Prepare adjusting entries on December 31, 2020. 2. Compute the total cash on December 31, 2020.

Armenia Company reported the following information on December 31, 2020: 1,000,000 Cash on hand Petty cash fund" Cash in bank 50,000 4,000,000 2,000,000 Saving deposit 7,050,000 Cash on hand included the following: a. Customer check of P100,000 returned by bank December 26, 2020 due to insufficient fund but subsequently redeposited and cleared by bank January 5, 2021. b. Customer check for P150,000 dated January 15, 2021 received December 22, 2020. c. Postal money orders received from customers, P200,000. The petty cash fund consisted of the following items: Currency and coins Employees' IOUS Currency in envelope marked collections for Christmas party Check drawn by Armenia payable to petty cashier 2,000 10,000 5,000 33,000 50,000 Check written and dated December 22, 2020 and delivered to payee on January 5, 2021, P200,000. Check written December 26, 2020 and dated January 31, 2021 delivered to payee on December 26, 2020, P300,000. Required: 1. Prepare adjusting entries on December 31, 2020. 2. Compute the total cash on December 31, 2020.

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

Armenia Company reported the following information on
Problem 1-3 (IAA)
December 31, 2020:
Cash on hand
Petty cash fund"
Cash in bank
1,000,000
50,000
4,000,000
2,000,000
Saving deposit
7,050,000
Cash on hand included the following:
a. Customer check of P100,000 returned by bank December
26, 2020 due to insufficient fund but subsequently
redeposited and cleared by bank January 5, 2021.
b. Customer check for P150,000 dated January 15, 2021
received December 22, 2020.
c. Postal money orders received from customers, P200,000.
The petty cash fund consisted of the following items:
*
Currency and coins
Employees' IOUS
Currency in envelope marked collections for
Christmas party
Check drawn by Armenia payable to petty cashier
2,000
10,000
5,000
33,000
50,000
Check written and dated December 22, 2020 and
delivered to payee on Januarý 5, 2021, P200,000.
Check written December 26, 2020 and dated January 31,
2021 delivered to payee on December 26, 2020, P300,000.
Required:
1. Prepare adjusting entries on December 31, 2020.
2. Compute the total cash on December 31, 2020.
20

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