Problem 1-3 (IAA) Armenia Company reported the following information on December 31, 2020: 1,000,000 50,000 4,000,000 2,000,000 Cash on hand Petty cash fund Cash in bank 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.
Problem 1-3 (IAA) Armenia Company reported the following information on December 31, 2020: 1,000,000 50,000 4,000,000 2,000,000 Cash on hand Petty cash fund Cash in bank 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Armenia Company reported the following information on
Problem 1-3 (IAA)
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
o2,000
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.
20
Transcribed Image Text:Argentina Company reported the following accounts on
Problem 1-2 (IAA)
December 31, 2020:
Cash on hand
1,000,000
50,000
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
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.
19
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