You were able to gather the following from the December 31, 2020 trial balance of Should Corporation in connection with your audit of the company: Cash on hand 372.000 Petty cash fund BPI current account Security Bank current account No. 01 Security Bank current account No. 02 PB savings account PB time deposit 10,000 950.000 1.280.000 (40,000) 500.000 300.000 Cash on hand includes the following items: a. Customer's check for P60,000 returned by bank on December 26, 2020 due to insufficient fund but subsequently redeposited and cleared by the bank on January 8, 2021. b. Customer's check for P30,000 dated January 2. 2021, received on December 29. 2020. c. Postal money orders received from customers, P36,000. The petty cash fund consisted of the following items as of December 31, 2020. Currency and coins Employees' vales Currency in an envelope marked "collections for charity" with names P 2.100 1.600 attached Unreplenished petty cash vouchers Check drawn by Should Corporation, payable to the petty cashier 1,200 800 4.600 P10,300 Included among the checks drawn by Should Corporation against the BI current account and recorded in December 2020 are the following: a. Check written and dated December 29, 2020 and delivered to payee on January 2, 2021, P50.000. b. Check written on December 27, 2020, dated January 2, 2021, delivered to payee on December 29, 2020, P86,000. 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, 2020. The savings account deposit in PB 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. COMPUTE FOR THE ADJUSTED BALANCE OF CASH AND CASH EQUIVALENTS
You were able to gather the following from the December 31, 2020
in connection with your audit of the company:
Cash on hand
372.000
Petty cash fund
BPI current account
Security Bank current account No. 01
Security Bank current account No. 02
PB savings account
PB time deposit
10,000
950.000
1.280.000
(40,000)
500.000
300.000
Cash on hand includes the following items:
a. Customer's check for P60,000 returned by bank on December 26, 2020 due to insufficient fund
but subsequently redeposited and cleared by the bank on January 8, 2021.
b. Customer's check for P30,000 dated January 2. 2021, received on December 29. 2020.
c. Postal money orders received from customers, P36,000.
The petty cash fund consisted of the following items as of December 31, 2020.
Currency and coins
Employees' vales
Currency in an envelope marked "collections for charity" with names
P 2.100
1.600
attached
Unreplenished petty cash vouchers
Check drawn by Should Corporation, payable to the petty cashier
1,200
800
4.600
P10,300
Included among the checks drawn by Should Corporation against the BI current account and
recorded in December 2020 are the following:
a. Check written and dated December 29, 2020 and delivered to payee on January 2, 2021,
P50.000.
b. Check written on December 27, 2020, dated January 2, 2021, delivered to payee on December
29, 2020, P86,000.
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, 2020.
The savings account deposit in PB 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.
COMPUTE FOR THE ADJUSTED BALANCE OF CASH AND CASH EQUIVALENTS
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