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  • PROBLEM 2 Cash and Cash Equivalent Valix

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    Micah April Sabularse
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    The document contains adjusting journal entries made on December 31 including reclassifying accounts receivable of $150,000 as cash and expenses of $10,000 and a receivable from an employee of $5,000 as a reduction to petty cash of $15,000. It also lists the total cash and cash equivalents of the company which amounts to $6,885,000 including cash on hand, petty cash, bank accounts, a bond sinking fund, and considers items such as a treasury bill and time deposit as current and non-current assets.

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    PROBLEM 2 cash and cash equivalent valix

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    The document contains adjusting journal entries made on December 31 including reclassifying accounts receivable of $150,000 as cash and expenses of $10,000 and a receivable from an employee of $5,000 as a reduction to petty cash of $15,000. It also lists the total cash and cash equivalents of the company which amounts to $6,885,000 including cash on hand, petty cash, bank accounts, a bond sinking fund, and considers items such as a treasury bill and time deposit as current and non-current assets.

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    © All Rights Reserved
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    303 views2 pages

    PROBLEM 2 Cash and Cash Equivalent Valix

    Uploaded by

    Micah April Sabularse
    The document contains adjusting journal entries made on December 31 including reclassifying accounts receivable of $150,000 as cash and expenses of $10,000 and a receivable from an employee of $5,000 as a reduction to petty cash of $15,000. It also lists the total cash and cash equivalents of the company which amounts to $6,885,000 including cash on hand, petty cash, bank accounts, a bond sinking fund, and considers items such as a treasury bill and time deposit as current and non-current assets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    PROBLEM 1-2

    1. ADJUSTING JOURNAL ENTRIES

    DATE PARTICULARS FOLIO DEBIT CREDIT

    Dec. 31 Accounts Receivable 150,000

    Cash on hand 150,000

    Expenses 10,000

    Receivable from employee 5,000

    Petty cash fund 15,000

    2. TOTAL AMOUNT OF CASH AND CASH EQUIVALENT

    Cash on hand 1,000,000

    Postdated check (150,000)

    Adjusted COH 850,000

    Petty cash fund 50,000

    Expenses (10,000)

    Postdated employee check (5,000)

    Adjusted petty cash fund 35,000

    Cash on hand 850,000

    Petty cash fund 35,000

    Security Bank current account 2,000,000

    PNB current account 1,500,000

    Bond sinking fund 2,500,000

    Total cash and cash equivalents 6,885,000


    3.

    BSP 120-day treasury bill of P3, 000,000 is considered as short-term investment because its maturity
    date is more than 3 months and must separately show as current asset.

    The overdraft in BDO current account of P200, 000 is considered as current liability

    The BPI Time deposit of P2, 000,000 is considered as noncurrent investment because it is set aside for an
    acquisition of land which is a noncurrent asset.

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