Reference no: EM132915378

Cash composition On December 31, 2018, Game Naba-a Co's Cash account balance per ledger of P4,000,000 includes:

Demand deposit ?2,200,000

Undeposited collection 300,000

Time deposit-30 days 500,000

NSF check of customer 20,000

35-day money market placement due 1/28/2019 300,000

45-day commercial papers due 2/4/2019 80,000

Savings deposit in closed bank 50,000

IOU from an employee 150,000

Preferred redemption fund 400,000

Total ?4,000,000

Additional information:

a. Included in the demand deposit of P2,500,000 was a customer check amounting to P50,000 dated January 25, 2019.

b. Also included in the demand deposit is a customer check amounting to P90,000 dated December 31, 2017. Game Naba-a Co's neglected to encash the check. On December 2018, the customer was informed and he was willing to replace this with a new one. New check is yet to be received from the customer.

c. Check of P60,000 dated January 31, 2019 in payment of accounts payable was recorded and mailed December 31, 2018.

d. Check of P70,000 in payment of accounts payable was recorded on December 31, 2018 but mailed to the creditors on January 15, 2019.

e. The company used the calendar year. The cash receipts journal was held open until January 15, 2019, during which time P80,000 was collected and recorded on December 31, 2018.

Required:

Problem a. adjusting entries to correct the cash account.

Problem b. Compute the cash and cash equivalents to be shown on December 31, 2018 Statement of Financial Position.