Callous Company reported the following accounts on December 31, 2020: Cash on hand Petty cash fund Philippine Bank current account City Bank current account No. 1 City Bank current account No. 2 (overdraft) Asia Bank saving account Asia Bank time deposit, 90 days 200,000 20,000 5,000,000 4,000,000 ( 100,000) 250,000 2,000,000 Cash on hand included the following items: Customer check for P35,000 returned by bank December 26, 2020 due to insufficient fund but subsequently redeposited and cleared by the bank on January 10, 2021. Customer check for P15,000 dated January 10, 2021, received December 23, 2020. The petty cash fund consisted of the following items: Currency and coins IOUS from officers Unreplenished petty cash vouchers 5,000 2,000 12,000 Included among the checks drawn by Callous Company against the Philippine Bank current account and recorded in December 2020 were the following: Check written and dated December 23, 2020 and delivered to payee on January 31, 2021, P25,000. Check written December 26, 2020, dated January 30, 2021, delivered to payee on December 28, 2020, P45,000. Required: 1. Compute the total cash and cash equivalents. 2. Prepare adjusting entries on December 31, 2020.

Callous Company reported the following accounts on December 31, 2020: Cash on hand Petty cash fund Philippine Bank current account City Bank current account No. 1 City Bank current account No. 2 (overdraft) Asia Bank saving account Asia Bank time deposit, 90 days 200,000 20,000 5,000,000 4,000,000 ( 100,000) 250,000 2,000,000 Cash on hand included the following items: Customer check for P35,000 returned by bank December 26, 2020 due to insufficient fund but subsequently redeposited and cleared by the bank on January 10, 2021. Customer check for P15,000 dated January 10, 2021, received December 23, 2020. The petty cash fund consisted of the following items: Currency and coins IOUS from officers Unreplenished petty cash vouchers 5,000 2,000 12,000 Included among the checks drawn by Callous Company against the Philippine Bank current account and recorded in December 2020 were the following: Check written and dated December 23, 2020 and delivered to payee on January 31, 2021, P25,000. Check written December 26, 2020, dated January 30, 2021, delivered to payee on December 28, 2020, P45,000. Required: 1. Compute the total cash and cash equivalents. 2. Prepare adjusting entries 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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