The cash records and the bank statement of Frankel Company showed the following at the end of February 2014: Outstanding checks as of the beginning of February 2014, $8,000; checks written by Frankel Company according to its books during February 2014, $50,000; and checks cleared by the bank during February 2014, $54,000. How much were the outstanding checks at the end of February 2014?

Question

Quizplus · Accepted Answer

The outstanding checks at the end of February 2014 are calculated as follows: Starting with $8,000 of outstanding checks at the beginning, plus $50,000 in checks written during February, totaling $58,000. Since $54,000 cleared, the remaining outstanding checks are $58,000 - $54,000 = $4,000.

The Cash Records and the Bank Statement of Frankel Company