You were able to gather the following from the December 31, 2006 trial balance of XYZ Corporation in connection with your audit of the company: Cash on hand = P 500,000 Petty cash fund = 10,000 BPI current account = 1,000,000
You were able to gather the following from the December 31, 2006
Cash on hand = P 500,000
Petty cash fund = 10,000
BPI current account = 1,000,000
Security Bank current account No. 01 = 1,080,000
Security Bank current account No. 02 =(80,000)
PNB savings account = 1,200,000
PNB time deposit = 500,000
Cash on hand includes the following items:
07. Customer's check for P40,000 returned by bank on December 26, 2006 due to insufficient fund but subsequently redeposited and cleared by the bank on January 8, 2007.
08. Customer's check for P20,000 dated January 2, 2007, received on December 29, 2006.
09. Postal money orders received from customers, P30,000.
The petty cash fund consisted of the following items as of December 31, 2006.
Currency and coins = P 2,000
Employees' IOUs = 1,000
Currency in an envelope marked "collections for charity" with names attached = 1,200
Unreplenished petty cash vouchers = 1,300
Check drawn by XYZ Corporation, payable to the petty cashier = 4,000
Included among the checks drawn by XYZ Corporation against the
BPI current account and recorded in December 2006 are the following:
1. Check written and dated December 29. 2006 and delivered to payee on January 2, 2007, P80,000.
2. Check written on December 27, 2006, dated January 2, 2007. delivered to payee on December 29. 2006. P40,000.
The credit balance in the Security Bank current account No. 2 represents checks drawn in excess of the deposit balance. These checks were still outstanding at December 31. 2006. The savings account deposit in PNB has been set aside by the board of directors for acquisition of new equipment. This account is expected to be disbursed in the next 3 months from the balance sheet date.
Determine the correct balance of the following
1. Cash on Hand
2. Petty Cash Fund
3. Cash and Cash Equivalents
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