On December 31, 2021, Donguines Company provided the following data:

Cash in Bank P 3,000,000

Time deposit- 30 days 1,000,000

Money market placement due in June 30, 2022 2,000,000

Savings deposit in closed bank 100,000

Sinking fund for bond payable due June 30, 2023 1,500,000

Petty Cash Fund 20,000

• The cash in bank included customer check of P200,000 outstanding for 18 months.

• Check of P250,000 in payment of accounts payable was dated and recorded on December 31, 2021 but mailed to creditors on January 15, 2022.

• Check of P100,000 dated January 31, 2022 in payment of accounts payable was recorded and mailed December 31, 2021

• The reporting period is the calendar year.

  • The cash receipts journal was held open until January 15,2022 during which time an amount of P450,000 was collected and recorded on December 31, 2021. (Window Dressing)

Required:

1. Prepare adjusting entries on December 31, 2021.

2. Compute the total amount of cash and cash equivalents that should be reported on December 31, 2021.

3. Explain the presentation of the items excluded from cash and cash equivalent.