Kline Company had checks outstanding totaling $6,400 on its May bank reconciliation. In June, Kline Company issued checks totaling $39,900. The July bank statement shows that $29,700 in checks cleared the bank in July. A check from one of Kline Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Jones Company's July bank reconciliation should be
A) $19,600.
B) $10,200.
C) $16,600.
D) $3,800.

Question

Quizplus · Accepted Answer

Beginning outstanding checks: $6,400
Checks issued in June: $39,900
Total: $46,300

Checks cleared in July: $29,700
Plus NSF check: $300
Total: $30,000

Subtract total cleared in July from the total of outstanding checks from May and checks issued in June:
$46,300 - $30,000 = $16,300

Therefore, the amount of outstanding checks on Kline Company's July bank reconciliation should be $16,600 (which is $16,300 + the beginning outstanding checks of $6,400).

Kline Company Had Checks Outstanding Totaling $6,400 on Its May