On December 31, 2021, ABC Company presents the following cash and cash equivalents account balance per ledger items: Demand deposit Undeposited collection Time deposit-30 days NSF check of customer 35-day money market placement due 1/28/2022 2,200,000 300,000 500,000 20,000 300,000 45-day commercial papers due 2/4/2022 Savings deposit in closed bank IOU from an employee Preferred redemption fund Additional information: a) Included in the demand deposit of P2,200,000 was a customer check amounting to P50,000 dated January 25, 2022. 80,000 50,000 150,000 400,000 b) Also included in the bank deposit is a customer check amounting to P90,000 dated December 31, 2020. The company neglected to encash the check. On December 31, 2021, the customer was informed and he was willing to replace this with a new one. New check is yet to be received from the customer. c) Check of P60,000 dated January 31, 2022 in payment of accounts payable was recorded and mailed December 31, 2021. d) Check of P70,000 in payment of accounts payable was recorded on December 31, 2021 but mailed to creditors on January 15. e) The company uses the calendar year. The cash receipts journal was held open until January 15, 2022, during which time P80,000 was collected and recorded on December 31, 2021. The adjusted balance of Cash and Cash Equivalents on December 31, 2021 is
On December 31, 2021, ABC Company presents the following cash and cash equivalents account balance per ledger items: Demand deposit Undeposited collection Time deposit-30 days NSF check of customer 35-day money market placement due 1/28/2022 2,200,000 300,000 500,000 20,000 300,000 45-day commercial papers due 2/4/2022 Savings deposit in closed bank IOU from an employee Preferred redemption fund Additional information: a) Included in the demand deposit of P2,200,000 was a customer check amounting to P50,000 dated January 25, 2022. 80,000 50,000 150,000 400,000 b) Also included in the bank deposit is a customer check amounting to P90,000 dated December 31, 2020. The company neglected to encash the check. On December 31, 2021, the customer was informed and he was willing to replace this with a new one. New check is yet to be received from the customer. c) Check of P60,000 dated January 31, 2022 in payment of accounts payable was recorded and mailed December 31, 2021. d) Check of P70,000 in payment of accounts payable was recorded on December 31, 2021 but mailed to creditors on January 15. e) The company uses the calendar year. The cash receipts journal was held open until January 15, 2022, during which time P80,000 was collected and recorded on December 31, 2021. The adjusted balance of Cash and Cash Equivalents on December 31, 2021 is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 31, 2021, ABC Company presents the following cash and cash equivalents account balance per
ledger items:
Demand deposit
2,200,000
Undeposited collection
300,000
Time deposit-30 days
500,000
NSF check of customer
20,000
300,000
35-day money market placement due
1/28/2022
45-day commercial papers due 2/4/2022
80,000
Savings deposit in closed bank
50,000
IOU from an employee
150,000
Preferred redemption fund
400,000
Additional information:
a)
Included in the demand deposit of P2,200,000 was a customer check amounting to P50,000 dated
January 25, 2022.
b)
Also included in the bank deposit is a customer check amounting to P90,000 dated December 31, 2020.
The company neglected to encash the check. On December 31, 2021, the customer was informed and he was
willing to replace this with a new one. New check is yet to be received from the customer.
c)
Check of P60,000 dated January 31, 2022 in payment of accounts payable was recorded and mailed
December 31, 2021.
d)
creditors on January 15.
Check of P70,000 in payment of accounts payable was recorded on December 31, 2021 but mailed to
e)
The company uses the calendar year. The cash receipts journal was held open until January 15, 2022,
during which time P80,000 was collected and recorded on December 31, 2021.
The adjusted balance of Cash and Cash Equivalents on December 31, 2021 is
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