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Adjustments Unreleased Check: SM Investments Corporation Had The Following Account Balances at December 31, 2019

SM Investments Corporation had the following account balances at December 31, 2019: cash on hand and in bank was P2,450,000; cash restricted for bonds payable due on June 30, 2020 was P1,000,000; and time deposit maturing on March 31, 2020 was P3,000,000. The correct amount of cash to be reported in the statement of financial position on December 31, 2019 is P1,965,000.

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Regina Mae Catampongan
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367 views3 pages

Adjustments Unreleased Check: SM Investments Corporation Had The Following Account Balances at December 31, 2019

SM Investments Corporation had the following account balances at December 31, 2019: cash on hand and in bank was P2,450,000; cash restricted for bonds payable due on June 30, 2020 was P1,000,000; and time deposit maturing on March 31, 2020 was P3,000,000. The correct amount of cash to be reported in the statement of financial position on December 31, 2019 is P1,965,000.

Uploaded by

Regina Mae Catampongan
Copyright
© © All Rights Reserved
Available Formats
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SM Investments Corporation had the following account balances at December 31, 2019:

ADJUSTMENTS

Unreleased check

12/31/2019

Cash 80,000

Accounts payable 80,000

Postdated check

Cash 20,000

Accounts payable 20,000

Collection

Accounts receivable 10,000

Cash 100,000

Stale check

Accounts receivable 50,000

Cash in bank 50,000

Cash on hand and in bank P2, 500,000

50,000 2,450,000

Cash restricted for bonds payable due 1,000,000

On June 30, 2020

Time Deposit 3,000,000

Savings deposit set aside for dividends 500,000

Payable on March 31, 2020

Unreleased check 80,000


Postdated check 20,000

Collection of 1/15/2020 recorded on 12/31/2019 (100,000)

Cash and cash equivalents 12/31/2019 P6, 950,000

Problem 6

Cash on hand 500,000

Less: Postdated checks (100,000) P400,000

Petty cash fund 20,000

Less: expenses (5,000) 15,000

Cash in bank

Security bank current account 1,000,000

Add: postdated check 200,000 1,200,000

Metrobank current account #1 400,000

Metrobank current account #2 (50,000) 350,000

P 1,965,000

The correct amount of “cash” to be reported in the statement of financial position


on December31, 2019 is P 1,965,000.

Poblem 7

Coins and Currencies 17,000

Add: petty cash 18,000 35,000


Petty cash vouchers

Gasoline 1,000

Supplies 2,000

Cash advances to employees 3,000

Employee’s check returned by bank marked NSF 4,000

Total for cash 10,000

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