Tallent Corporation had the following account balances at December 31, Year 1: Cash on hand and in banks $975,000 Cash legally restricted for additions to plant (expected to be disbursed in Year 3) 600,000 Bank certificates of deposit (due February 1, Year 2, purchased September 1, Year 1) 250,000 In the current assets section of Tallent’s December 31, Year 1, balance sheet, what total amount should be reported under the caption "cash and cash equivalents"?
Tallent Corporation had the following account balances at December 31, Year 1: Cash on hand and in banks $975,000 Cash legally restricted for additions to plant (expected to be disbursed in Year 3) 600,000 Bank certificates of deposit (due February 1, Year 2, purchased September 1, Year 1) 250,000 In the current assets section of Tallent’s December 31, Year 1, balance sheet, what total amount should be reported under the caption "cash and cash equivalents"?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tallent Corporation had the following account balances at December 31, Year 1:
| Cash on hand and in banks | $975,000 | |
| Cash legally restricted for additions to plant (expected to be disbursed in Year 3) | 600,000 | |
| Bank certificates of deposit (due February 1, Year 2, purchased September 1, Year 1) | 250,000 |
In the current assets section of Tallent’s December 31, Year 1,
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