Reference no: EM132834557

Problem - Callous Company reported the following accounts on December 31, 2020:

Cash on hand 200,000

Petty cash fund 20,000

Philippine Bank current account 5,000,000

City Bank current account No. 1 4,000,000

City Bank current account No. 2 (overdraft) (100,000)

Asia Bank saving account 250,000

Asia Bank time deposit, 90 days 2,000,000

Cash on hand included the following items:

Customer check for P35,000 returned by bank December 26, 2020 due to insufficient fund but subsequently re-deposited and cleared by the bank on January 10, 2021.

Customer check for P15,000 dated January 10, 2021, received December 23, 2020.

The petty cash fund consisted of the following items:

Currency and coins 5,000

IOUs from officers 2,000

Un-replenished petty cash vouchers 12,000

Included among the checks drawn by Callous Company against the Philippine Bank current account and recorded in December 2020 were the following:

Check written and dated December 23, 2020 and delivered to payee on January 31, 2021, P25,000.

Check written December 26, 2020, dated January 30, 2021, delivered to payee on December 28, 2020, P45,000.

Required -

1. Compute the total cash and cash equivalents.

2. Prepare adjusting entries on December 31, 2020.