Cash in banks $1,300,000 Petty cash funds (all funds were reimbursed on December 31, 2019) Cash legally restricted for additions to plant (expected to be disbursed in 2021) 20,000 2,000,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Greenfield Company had the following cash balances at December 31, 2019:

Cash in banks includes $300,000 of compensating balances against short-
term borrowing arrangements at December 31, 2019. The compensating
balances are not legally restricted as to withdrawal by Greenfield. In the
current assets section of Green-field's December 31, 2019, balance sheet,
what total amount should be reported as cash?
a. $1,020,000
b. $1,320,000
c. $3,020,000
d. $3,320,000

Cash in banks
$1,300,000
Petty cash funds (all funds were
reimbursed on December 31, 2019)
Cash legally restricted for additions to
plant (expected to be disbursed in
2021)
20,000
2,000,000
Transcribed Image Text:Cash in banks $1,300,000 Petty cash funds (all funds were reimbursed on December 31, 2019) Cash legally restricted for additions to plant (expected to be disbursed in 2021) 20,000 2,000,000
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