You noted the following composition of MALABO Company's "cash account" as of December 31, 2020 you noted th following composition:

Demand deposit account P2,000,000

Time deposit - 30 days 1,000,000

NSF check of customer 40,000

Money market placement (due June 30, 2007) 1,500,000

Savings deposit in a closed bank 100,000

IOU from employee 20,000

Pension fund 3,000,000

Petty cash fund 10,000

Customer's check dated January 1, 2007 50,000

Customer's check outstanding for 18 months 40,000

Total P7,760,000 (double ruled)

Additional information follows:

a)Check of P200,000 in payment of accounts payable was recorded on December 31, 2020 but mailed to suppliers on January 5, 2021..

b)Check of P100,000 dated January 15, 2021 in payment of accounts payable was recorded and mailed on December 31, 2020.

c)MALABO uses the calendar year.The cash receipts journal was held open until January 15, 2021, during which time P400,000 was collected and recorded on December 31, 2020.

Requirements:

1. prepare an adjusting entries.

2. compute the cash and cash equivalents to be shown on 12/31/2020 statement of financial position.