Logistics Company had the following items listed in its trial balance at 12/31/09: Included in the checking account balance is $50,000 of restricted cash that Bank of the East requires as a compensating balance for the $300,000 note. What amount will Logistics include in its year-end balance sheet as cash and cash equivalents?

Question

Quizplus · Accepted Answer

The restricted cash of $50,000 should not be included in cash and cash equivalents. Therefore, the amount included as cash and cash equivalents is $462,000 - $50,000 = $412,000.

Logistics Company Had the Following Items Listed in Its Trial