Sanchez Company reported the following accounts on December 31, 2020: Cash on hand 1,000,000 Petty cash fund 50,000 Security Bank current account 2,000,000 PNB current account 1,500,000 BDO current account (overdraft) ( 200,000) BSP treasury bill — 120 days 3,000,000 BPI time deposit 90 days 2,000,000 Bond sinking fund 2,500,000 The cash on hand included a customer postdated check of P150,000 and postal money order of P50,000. The petty cash fund included unreplenished petty cash vouchers for P10,000 and an employee check for P5,000 dated January 31, 2021. The BPI time deposit is set aside for acquisition of land to be made in early January 2021. The bond sinking fund is set aside for payment of bond payable due December 31, 2021. Required: 1. Prepare adjusting entries on December 31, 2020. 2. Compute the total amount of cash and cash equivalents as of December 31, 2020. 3. Explain the presentation of the items excluded from cash and cash equivalents.
Sanchez Company reported the following accounts on December 31, 2020: Cash on hand 1,000,000 Petty cash fund 50,000 Security Bank current account 2,000,000 PNB current account 1,500,000 BDO current account (overdraft) ( 200,000) BSP treasury bill — 120 days 3,000,000 BPI time deposit 90 days 2,000,000 Bond sinking fund 2,500,000 The cash on hand included a customer postdated check of P150,000 and postal money order of P50,000. The petty cash fund included unreplenished petty cash vouchers for P10,000 and an employee check for P5,000 dated January 31, 2021. The BPI time deposit is set aside for acquisition of land to be made in early January 2021. The bond sinking fund is set aside for payment of bond payable due December 31, 2021. Required: 1. Prepare adjusting entries on December 31, 2020. 2. Compute the total amount of cash and cash equivalents as of December 31, 2020. 3. Explain the presentation of the items excluded from cash and cash equivalents.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 43E: Determining Cash Flows from Financing Activities Solomon Construction Company reported the following...
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Question
Sanchez Company reported the following accounts on December 31, 2020:
Cash on hand 1,000,000
Petty cash fund 50,000
Security Bank current account 2,000,000
PNB current account 1,500,000
BDO current account (overdraft) ( 200,000)
BSP treasury bill — 120 days 3,000,000
BPI time deposit 90 days 2,000,000
Bond sinking fund 2,500,000
The cash on hand included a customer postdated check of P150,000 and postal money order
of P50,000.
The petty cash fund included unreplenished petty cash vouchers for P10,000 and an
employee check for P5,000 dated January 31, 2021.
The BPI time deposit is set aside for acquisition of land to be made in early January 2021.
The bond sinking fund is set aside for payment of bond payable due December 31, 2021.
Required:
1. Prepare adjusting entries on December 31, 2020.
2. Compute the total amount of cash and cash equivalents as of December 31, 2020.
3. Explain the presentation of the items excluded from cash and cash equivalents.
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