Question

Time Remaining 1 hour 52 minutes 25 seconds

01:52:25

Item 2

Item 2

Time Remaining 1 hour 52 minutes 25 seconds

01:52:25

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

Peterson Savings and Loan:	$	65,000
Right Bank:		(12,500	)
Clinton County Trust Bank:		25,000

If Wilson reports under U.S. GAAP, its 12/31/2021 balance sheet would show what cash balance?

A. -12,500

B. 77,500

C. 90,000

D. None

Answer 1

Cash balance as per GAAP = 65,000 + 25,000 = 90,000 Option C is the answer
Overdraft is shown as current liability under GAAP