Jackson Company had the following cash balances at December 31, 2011:

Cash in banks includes $125,000 of compensating balances against short-term borrowing arrangements at December 31, 2011. The compensating balances are legally restricted as to withdrawal by Jackson. In the current asset section of Jackson's December 31, 2011, balance sheet, what total amount should be reported as Cash?

Question

Jackson Company had the following cash balances at December 31, 2011:

Cash in banks includes $125,000 of compensating balances against short-term borrowing arrangements at December 31, 2011. The compensating balances are legally restricted as to withdrawal by Jackson. In the current asset section of Jackson's December 31, 2011, balance sheet, what total amount should be reported as Cash?

Quizplus · Accepted Answer

The Answer of Jackson Company had the following cash balances at December 31, 2011:

Cash in banks includes $125,000 of compensating balances against short-term borrowing arrangements at December 31, 2011. The compensating balances are legally restricted as to withdrawal by Jackson. In the current asset section of Jackson's December 31, 2011, balance sheet, what total amount should be reported as Cash?

Jackson Company Had the Following Cash Balances at December 31