The cash account of Kelly Company on December 31, 2017 include the following:

Cash on hand $ 500.000

Petty cash fund 20.000

Cash in bank 2.000.000

$ 2.520.000

Cash on hand includes:

a.Customer check of $40,000 returned by bank on December 26, 2017 due to insufficient fund but subsequently redeposited and cleared by bank January 5, 2018. b.Customer check of $60,000 dated January 15, 2017 received December 22, 2017.

c.Postal money order received from customers, $50,000.

Petty cash fund consist of the following items:

Currency and coins $ 1.000

Employees' vales 3.000

Currency in envelop marked "collections for New Year party 2.000

Check drawn by Kelly Company payable to petty cashier 14.000

Total $ 20.000

Included among the checks drawn by Kelly Company against its current account and recorded in December 2017 are:

a.Check written and dated December 22, 2017 and delivered to payee on January 5, 2018 $100,000.

b.Check written December 26, 2017 and dated January 31, 2018 delivered to payee on December 26, 2017, $150,000.

Required:

Compute for the correct :

a.Cash on hand.

b.Petty cash fund.

c.Cash in bank

d.Prepare the adjusting entries on December 31, 2017.