Grisson Enterprises provides the following data:
Notes related to these data include:
*1 A current loan obligation to First Bank requires Grisson to maintain a $1,200 compensating balance in the Savings account
*2 Grisson's board of directors have specified that these funds are restricted to provide for retirement of company bonds that mature in seven years.
Required:
a.Following U.S.GAAP,what is the dollar amount of Cash and Cash Equivalents reported on Grisson's balance sheet?
b.Describe appropriate accounting treatment for any given data that is excluded from Cash and Cash Equivalents.

Question

Grisson Enterprises provides the following data:
  Notes related to these data include:
*1 A current loan obligation to First Bank requires Grisson to maintain a $1,200 compensating balance in the Savings account
*2 Grisson's board of directors have specified that these funds are restricted to provide for retirement of company bonds that mature in seven years.
Required:
a.Following U.S.GAAP,what is the dollar amount of Cash and Cash Equivalents reported on Grisson's balance sheet?
b.Describe appropriate accounting treatment for any given data that is excluded from Cash and Cash Equivalents.

Quizplus · Accepted Answer

The Answer of Grisson Enterprises provides the following data:
  Notes related to these data include:
*1 A current loan obligation to First Bank requires Grisson to maintain a $1,200 compensating balance in the Savings account
*2 Grisson's board of directors have specified that these funds are restricted to provide for retirement of company bonds that mature in seven years.
Required:
a.Following U.S.GAAP,what is the dollar amount of Cash and Cash Equivalents reported on Grisson's balance sheet?
b.Describe appropriate accounting treatment for any given data that is excluded from Cash and Cash Equivalents.

Grisson Enterprises Provides the Following Data