On December, 31,2017, Alaska 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, 2018 -- 2,000,000

Saving deposit in closed bank -- 100,000

Sinking fund for bond payable due on June 30, 2019 -- 1,500,000

Petty Cash fund -- 20,000

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* The cash in bank included customer check of 200,000 outstanding for 18 months

* Check of 250,000 in payment of accounts payable was dated and recorded on December 31, 2017 but mailed to creditors on January 15, 2018

* Check of 100,000 dated January 31,2018 in payment of accounts payable was recorded and mailed December 31, 2017

* The reporting period is the calendar year

The cash receipts journal was held open until January 15, 2018 during which time an amount of 450,000 was collected and recorded on December 31, 2017

Required:

1. Prepare adjusting entries on December 31, 2017

2. Compute the total amount of cash and cash equivalents that should be reported on December 31, 2017

3. Explain the presentation of the items excluded form cash and cash equivalents.