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On December 31, 20X1, Albania Company provided the following data: Cash in bank 3,000,000 Time deposit – 30 days 1,000,000 Money market placement due on June 30, 20X2 2,000,000 Saving deposit in a closed bank 100,000 Sinking fund for bond payable June 30, 20X3 1,500,000 Petty cash fund 20,000  The cash in the bank included a customer check of P200,000 outstanding for 18 months. A check of P250,000 in payment of accounts payable was dated and recorded on December 31, 20X1, but mailed to creditors on January 15, 20X2. Check of P100,000 dated January 31, 20X2, in payment of accounts payable was recorded and mailed December 31, 20X1.  The reporting period is the calendar year.  Answer: Cash in bank 3,000,000 Customer check outstanding for 18 months (200,000) Undelivered check 250,000 Postdated check delivered 100,000 Collection on January 2020 recorded on December 31, 2019 (450,0000) Adjusted Cash in Bank 2,700,000 Cash in Bank 2,700,000 Time Deposit- 30 DAYS 1,000,000 Petty Cash Fund 20,000 TOTAL CASH AND CASH EQUIVALENT 3,720,000 Question: Why is undelivered check and postdated check not decuted?

On December 31, 20X1, Albania Company provided the following data: Cash in bank 3,000,000 Time deposit – 30 days 1,000,000 Money market placement due on June 30, 20X2 2,000,000 Saving deposit in a closed bank 100,000 Sinking fund for bond payable June 30, 20X3 1,500,000 Petty cash fund 20,000  The cash in the bank included a customer check of P200,000 outstanding for 18 months. A check of P250,000 in payment of accounts payable was dated and recorded on December 31, 20X1, but mailed to creditors on January 15, 20X2. Check of P100,000 dated January 31, 20X2, in payment of accounts payable was recorded and mailed December 31, 20X1.  The reporting period is the calendar year.  Answer: Cash in bank 3,000,000 Customer check outstanding for 18 months (200,000) Undelivered check 250,000 Postdated check delivered 100,000 Collection on January 2020 recorded on December 31, 2019 (450,0000) Adjusted Cash in Bank 2,700,000 Cash in Bank 2,700,000 Time Deposit- 30 DAYS 1,000,000 Petty Cash Fund 20,000 TOTAL CASH AND CASH EQUIVALENT 3,720,000 Question: Why is undelivered check and postdated check not decuted?

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter5: Internal Control And Cash
Section: Chapter Questions
Problem 5.4.3P
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On December 31, 20X1, Albania Company provided the following data:

  • Cash in bank 3,000,000
  • Time deposit – 30 days 1,000,000
  • Money market placement due on June 30, 20X2 2,000,000
  • Saving deposit in a closed bank 100,000
  • Sinking fund for bond payable June 30, 20X3 1,500,000
  • Petty cash fund 20,000
  •  The cash in the bank included a customer check of P200,000 outstanding for 18 months.
  • A check of P250,000 in payment of accounts payable was dated and recorded on December 31, 20X1, but mailed to creditors
    on January 15, 20X2.
  • Check of P100,000 dated January 31, 20X2, in payment of accounts payable was recorded and mailed December 31, 20X1.
  •  The reporting period is the calendar year. 

Answer:

Cash in bank 3,000,000
Customer check outstanding for 18 months (200,000)
Undelivered check 250,000
Postdated check delivered 100,000
Collection on January 2020 recorded on December 31, 2019 (450,0000)
Adjusted Cash in Bank 2,700,000
Cash in Bank 2,700,000
Time Deposit- 30 DAYS 1,000,000
Petty Cash Fund 20,000
TOTAL CASH AND CASH EQUIVALENT 3,720,000

Question: Why is undelivered check and postdated check not decuted?

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