The following items are found in the cash account of AAA Company at December 31, 2021. The company’s controller asks your opinion whether the items listed below should be considered as part of cash account and come up with an adjusting entry to adjust the cash account. • A check worth P288,000 from customer who paid the account net of the 4% discount. The company records the transaction as credit to Accounts Receivable for the proceeds. • Postage stamps, P1,000; • Cash in closed bank (F Bank), P195,000;
The following items are found in the cash account of AAA Company at December 31, 2021. The company’s controller asks your opinion whether the items listed below should be considered as part of cash account and come up with an
• A check worth P288,000 from customer who paid the account net of the 4% discount. The company records the transaction as credit to
• Postage stamps, P1,000;
• Cash in closed bank (F Bank), P195,000;
• Redemption fund, P300,000;
• Sinking fund, P300,000. This will be used on May 1, 2022 to redeem the bonds payable;
• Change fund, P25,000;
• X Bank Checking Account No. 0004568, P410,000.
• Y Checking Account No. 0002347, P275,000.;
• Overdraft in Z Checking Account No. 00011256, P150,000 resulting from a withdrawal of a company’s check dated January 3, 2022 in payment of account, P450,000. This was recorded in the company’s disbursement ledger at December 31, 2021;
• Overdraft in X Checking Account No. 0056791, P155,000;
• 90-day Treasury Bills (purchase on November 1, 2021), P250,000;
• Treasury Bills that will mature on February 13, 2022, P150,000, acquired middle of November 2021.
• Customers’ check dated December 25, 2021, P55,000;
• Company’s check (P50,000) dated December 26, 2021 which was drawn in payment for merchandise purchased on that date but not delivered until January 3, 2022. This check was deducted in the cash balance;
AAA COMPANY’S adjusted cash and cash equivalents balance at December 31, 2021 is:
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