The cash records and the bank statement of Frankel Company showed the following at the end of February: Outstanding checks as of the beginning of February,$8,000;checks written by Frankel Company according to its books during February,$50,000;and checks cleared by the bank during February,$54,000.What was the amount of the outstanding checks at the end of February?

Question

Quizplus · Accepted Answer

The outstanding checks at the end of February can be calculated as follows:
Outstanding checks at beginning of February + Checks written during February - Checks cleared during February
$8,000 + $50,000 - $54,000 = $4,000
Therefore, the answer is B.

The Cash Records and the Bank Statement of Frankel Company