Logistics Company had the following items listed in its trial balance at 12/31/2

Question

Logistics Company had the following items listed in its trial balance at 12/31/2016: Balance in checking account, Bank of the East $412,000 Treasury bills, purchased on 11/1/2016, mature on 1/30/2017 24,000 Loan payable, long-term, Bank of the East 280,000 Included in the checking account balance is $60,000 of restricted cash that Bank of the East requires as a compensating balance for the $280,000 note. What amount will Logistics include in its year-end balance sheet as cash and cash equivalents?

Explanation / Answer

Answer:

Amount to shown as cash and cash equivalent in the year end Balance sheet of Logistcs company

= Checking account balace (Unrestricted) + Treasury Bills

= (412,000 - 60,000) + 24,000

= $376,000

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.