whats the answer in question 1? Case 3Pallas Company engaged the services of your firm to audit its financialstatement. You were assigned to audit the cash balance of the entity as oDecember 31, 2021. The following information was taken from the ledgeaccounts of the entity:Cash EquivalentsCash in Bank– MetrobankCash in Bank- Banco De Oro (BDO)Cash in Bank- Bank of the Philippine Islands (BPI)P950,0001,780,000700,0003,000,000Additional information:a. The cash equivalents account includes the following:Gift certificates received from a generous customer, P50,000.ASASTISSPage 195oquivalents150 days.maturing on 1/20/2022future credit availability, this amount was included in the cash inaccount.e The BDO ledger account is composed of the following:Savings Account #74620 - P500,000This pertains to a time deposit with a maturity of 30 days frombalance sheet date. This was acquired on December 30, 2021Savings Account #28473 - P500,000This account is maintained specifically for acquisition of propenplant and equipment. This account is expected to be disbursed onMarch 15, 2023.• Checking Account #69240- (P300,000)This account is used for disbursement to pay various suppliers. Theselected items below are part of the recorded disbursements in2021 which are not yet encash from the bank as of the baiancesheet date:Check payable to a supplier dated 3/31/2021, P120,000released 3/1/2021Check payable to a supplier dated 12/30/2021,released 1/2/2022Check payable to a supplier dated 12/31/2021,released 11/15/2021Check payable to a supplier dated 1/7/2022, released12/28/2021Check payable to a supplier dated 1/3/2022, released1/2/202285,000104,00097,00088,000 Chapter 2: Audit of cash and c ash equivalentsd. The details below are related to the BPI ledger account:A P100,000 customer's check payable to Pallas Company, datedJanuary 2, 2022, was not included in the December 31, 2021balance.AP120,000 check payable to Pallas Company which was depositedDecember 19, 2021 and included in the December 31, 2021balance, was returned by the bank on December 30,2021 markedNSF. The check was redeposited on January 2, 2022 and clearedthe bank January 4, 2022.A P750,000 check payable to a supplier and drawn on PallasCompany's account, was dated and recorded December 31,2021but was not mailed until January 7, 2022.Determine the following as a result of your audit:1. How much is the correct balance of cash equivalent as of December31, 2021?2. How much is the correct cash in Metrobank as of December 31, 2021?3. How much is the correct cash in BD0 as of December 31, 2021?4. How much is the correct cash in BPI as of December 31, 2021?5. How much is the amount of cash and cash equivalents reported in itsstatement of financial position as of December 31, 2021?

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