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PROBLEM 2 BELIEVER Company reported the following accounts on December 31, 2020: Petty cash fund 90,000 Cash on hand 1,070,000 Security Bank current account 1,920,000
PROBLEM 2 BELIEVER Company reported the following accounts on December 31, 2020: Petty cash fund 90,000 Cash on hand 1,070,000 Security Bank current account 1,920,000 PNB current account (overdraft) (260,000) BSP treasury bill - 120 days 2,140,000 BPI time deposit - 90 days 1,800,000 Bond sinking fund 2,110,000 The petty cash fund included unreplenished petty cash vouchers for P18,000 and an employee check for P7,000 dated January 31, 2021. The cash on hand included a customer postdated check of P190,000 and postal money order of P50,000 The bond sinking fund is set aside for payment of bond payable due December 31, 2021. a. Prepare adjusting entries on December 31, 2020. b. Compute the total amount of cash and cash equivalents
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