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PRDBLEM 1. Your audit of the cash account of Leila Corporation reveals the following information: (1) Savings account of F1,00,000 and commercial checking account of

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PRDBLEM 1. Your audit of the cash account of Leila Corporation reveals the following information: (1) Savings account of F1,00,000 and commercial checking account of P800000 with Metropolitan Bank and Trust Company. Balances were taken from Leila's general ledger. (2) Three certificates of deposit with Metro Bank, each totaling P1,000.000. with maturity dated of 00 days and less. (3) Money market placements with Axa Group of Companies, not intended to be terminated until 2010, P3,000,000 face amount. Last value date was December 20, 2019 on which date, cumulative income earned on lite instrument is P200000. (4) Checking account with Allied Bank for payroll fund, F'1,200,000 and another checking account for tax fund, P500000. (5) A check tor F35,000 for salaries of an employee on leave was recorded as disbursed on December 15; the employee has not claimed the check as of December 31. (0) Savings account with Allied Bank, F000,000 as equipment acquisition fund, P480000 of which was earmarked for an equipment to be delivered in March 2020. You were able to verity that this amount was actually disbursed in March 2020. (7') Petty cash fund with imprest balance of P20,000. Your count of the fund on January 4, 2020 revealed the following fund composition: Bills and coins, F12,000; paid petty cash vouchers, all dated December 2010, P0300; IOUs from employees, with no supporting petty cash vouchers, P1,200; and a check drawn against MetroBank checking account in the amount of P5300 covering lvleralco bill for the period November 20 to December 30, 2010. (8) Checks trorn customers in settlement of account, both on sales invoices for the month of December 2019, totaling F85,000. The checks were verified to have been recorded in the December cash receipts joumal, although one check for P25,000 was dated January 8, 2020. All the checks proved to be good when subsequently deposited. REQUtRED: (a) Prepare all the necessary audit adjusting entries as a result of the foregoing. (b) Determine the amount that will be reported as \"Cash and Cash Equivalents" on the December 31, 2019 statement of financial position

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