Make the proof of cash & cash and cash equivalents with adjusted entry ABS Company showed the following information available as of December 31, 2021 before any adjustments during themonth:Petty cash fundCash on hand29,000150,000500,000900,000Cash in BDOCash in BPICash equivalentsOther current assets200,00050,000(1) The Petty cash box as of December 31 includes the following:Currencies and coinsCheck replenisment for December recorded under Cash on handCustomer NSF check returned by BPI9,00030,00010,000(2) The petty cash book shows that the petty cash fund has an original balance of Php50,000 and the totaldisbursements during December amounted to Php20,000. The entity sends replenishment checks every monthexcept in November, hence, an adjustment was properly made on November 30.(3) The cash in BDO includes the following:Certificate of deposit that has a 60-day maturityMisplaced customer check, outstanding for more than 6 monthsCustomer check for Php12,0000 erroneously recorded as40,00020,00021,00020,00011,000(4) Suppliers' check drawn against cash in BDO mailed in January 2022(5) Customer-post dated check recorded in cash on hand(6) Check drawn against cash in BPI and recorded in December but waiting for pick up by thecreditor28,000100,000(7) 5-month time deposit that is due on February 28, 2022 included in cash equivalents(8) 2-year Investment in bonds, due on January 31, 2022 included in other noncurrent assets(9) Checks drawn but still outstanding as of December 31, 2021300,000BDO12,00015,000BPI

ABS Company's as of 31.12.2021 Petty cash fund = 29000 Petty cash book fund shows original balance…

Answered: Cash in BDO Cash in BPI Cash…

Business

Accounting

Cash in BDO Cash in BPI Cash equivalents Other current assets

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.9MCE

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