Assignment #1

Intermediate Accounting 1
Problem 1-1.
Requirement 1. Adjusting Entries
Accounts Receivable 200,000
Cash in Bank 200,000

Cash in Bank 250,000

Accounts Payable 250,000

Cash in Bank 100,000

Accounts Payable 100,000

Accounts Receivable 450,000

Cash in Bank 450,000

Requirement 2. Total Amount of Cash and Cash Equivalents

Cash in Bank 3,000,000
Customer Check (200,000)
Undelivered Check 250,000
Postdated Check Delivered 100,000
Collection on December 31, 2021 (450,000)
Adjusted Cash in Bank 2,700,000
Time Deposit- 30 days 1,000,000
Petty Cash Fund 20,000
Total Cash and Cash Equivalents 3,720,000
Requirement 3. Explanation
 The Money market placement due on June 30, 2022 is classified as current asset.
 The saving deposit in closed bank is classified as receivable.
 The sinking fund for bond payable due on June 30, 2023 is classified as
noncurrent asset.
Problem 1-2.
Requirement 1. Adjusting Entries
Accounts Receivable 150,000
Cash on Hand 150,000

Expenses 10,000
Receivable from employee 5,000
Petty Cash Fund 15,000

Requirement 2. Total Amount of Cash and Cash Equivalents

Cash on Hand 1,000,000
Postdated Check (150,000)
Adjusted Cash on Hand 850,000

Petty Cash Fund 50,000

Unreplenished Petty Cash 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
Requirement 3. Explanation
 The overdraft in BDO current account is classified as current liability.
 The BSP treasury bill is classified as current asset.
 The BPI time deposit set aside for acquisition of land is classified as noncurrent
asset.