The Cash account in the ledger of Hensley Limited showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks.
-Refer to the above data. What is the total amount of the outstanding checks at June 30?

Question

Quizplus · Accepted Answer

The total of the outstanding checks is calculated by adding up the checks that have been issued but not yet cleared by the bank. In this case, the outstanding checks at June 30 are the checks issued in June, which total $1,507 (as calculated by subtracting the total of cleared checks from the total checks issued: $6,010 - $4,503 = $1,507). Therefore, the correct choice is C.

The Cash Account in the Ledger of Hensley Limited Showed