Reference no: EM132584488

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

Balance in checking account, Bank of the East $402,000

Treasury bills, purchased on 11/1/2021, mature on 1/30/2022 16,000

Loan payable, long-term, Bank of the East 230,000

Question 1: Included in the checking account balance is $40,000 of restricted cash that Bank of the East requires as a compensating balance for the $230,000 note. What amount will Logistics include in its year-end balance sheet as cash and cash equivalents?

Multiple Choice

Option 1: $378,000.

Option 2: $418,000.

Option 3: $402,000.

Option 4: $362,000.