Argentine Company reported the following accounts on December 31, 2017:

cash on hand


Petty cash fund


Thrift Bank current account 2,000,000
PCB current account 1,500,000
PBB current account (overdraft) (200,000)
ABC treasury bill-120 days 3,000,000
DEF time deposit - 90days 2,000,000
Bond sinking fund 2,500,000

* The cash on hand included a customer postdated check of 150,000 and postal money order of 50,000.

* The petty cash fund included unreplenished petty cash vouchers for 10,000 and an employee check for 5,000 dated January 31, 2018.

* The DEF time deposit is set aside for acquisition of land to be made in early January 2018.

* The bond sinking fund is set aside for payment of bond payable due December 31,2018.


1. Prepare adjusting entries on December 31,2017.

2. Compute the total amount of cash and cash equivalents.

3. Explain the presentation of the items excluded from cash and cash equivalents.

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Trinidad Tremblay
Trinidad TremblayLv2
28 Sep 2019

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