1. The record of SM Co. on Dec. 31, 20x1 show the following:

Check drawn but not yet issued to payees - 120,000

Customer's check dated January 15, 20x2 - 35,000

Customer's check dated Dec. 31, 20x1 - 40,000

SML's check dated Jan. 15, 20x2 already mailed to payee - 16,000

Cash on hand - 130,000

Employees' checks representing unclaimed salaries, held by treasurer - 14,000

Petty cash fund (fully replenished) - 20,000

REQUIREMENTS:

• Provide adjusting entry
• How much is included as cash on Dec. 31, 20x1