The trial balance of Euro Company at December 31, 2016 includes
the following accounts:
Petty Cash Fund P 5,000
Cash on Hand 19,700
Metrobank, Current Account 1,10,200
Allied Bank, General Account 1,62,000
Allied Bank, Payroll Account(credit balance) 4,000
Security Bank, Savings Account 65,000
a. The petty cash fund consisted of the following items as of December 31, 2016:
• Currency and coins, P1,490.
• Employees' advances, with no supporting vouchers. P880
• Currency in an envelope marked "collections for charity" with employees' names attached, P160.
• Unreplenisheci petty cash vouchers, P740
• Replenishment check drawn by Europayable to the petty cashier, P1,830
b. Cash on hand includes the following items:
• Customer's check for P5,000 returned by bank on December 26, 2016 due to insufficient funds. but subsequently redeposited and cleared by the bank on January 10, 2017.
• Postal money orders received from customers, P2,800.
• Customer's check for P1.500 dated January 10, 2017 received December 23, 2016.
c. Included among the checks drawn by Euro against the Metrobank current account and recorded in December 2016 are the following:
• Check #1214 written and dated December 23, 2016 and delivered to payee on January 3, 2017. P2,500.
• Check #1219 written December 26, 2016, dated January 30, 2017, delivered to payee on December 28, 2016, P4,300.
d. The credit balance in Allied Bank payroll account represents checks drawn in excess of the deposit balance. The checks are still outstanding at December 31, 2016. A right of offset exists in the agreement between Allied Bank and its depositors.
e. The savings account deposit in Security Bank was a fund set aside by the Board of Directors for the acquisition of new equipment. The company expects to disburse the amount in March 2017.
REQUIRED:
Determine the correct amount of cash reported as current asset in Euro's December 31, 2016 statement of financial position.