Balance in checking account bank of the east 442000 what


Question - Logistics Company had the following items listed in its trail balance at 12/31/09:

Balance in checking account, Bank of the East $442,000

Treasury Bills, purchased on 11/1/09, mature on 1/30/10 $20,000

Loan payable, long-term, Bank of the East $300,000

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?

A. $412,000

B. $462,000

C. $392,000

D. $442,000

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