Logistics Company had the following items listed in its trial balance at 12/31/2021:

 Logistics Company had the following items listed in its trial balance at 12/31/2021:
               
Balance in checking account, Bank of the East    $    472,000    
Treasury bills, purchased on 11/1/2021,
mature on 1/30/2022         12,000    
Loan payable, long-term, Bank of the East         250,000    

Included in the checking account balance is $59,000 of restricted cash that Bank of the East requires as a compensating balance for the $250,000 note. What amount will Logistics include in its year-end balance sheet as cash and cash equivalents?

Multiple Choice

$425,000.



$484,000.


$472,000.


$413,000.

Answer

$425,000.
Explanation
$472,000 − $59,000 + $12,000 = $425,000

 

Thanks