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PROBLEM 2 Cash and Cash Equivalent Valix

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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Micah April Sabularse
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363 views2 pages

PROBLEM 2 Cash and Cash Equivalent Valix

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.

Uploaded by

Micah April Sabularse
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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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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