Jukebox Company had checks outstanding totaling $10,800 on its June bank reconciliation. In July, Jukebox Company issued checks totaling $77,800. The July bank statement shows that $76,600 in checks cleared the bank in July. A check from one of Jukebox Company's customers in the amount of $1,000 was also returned marked "NSF." The amount of outstanding checks on Jukebox Company's July bank reconciliation should be
A) $1,200.
B) $11,000.
C) $12,000.
D) $13,000.

Question

Quizplus · Accepted Answer

The outstanding checks at the end of July are calculated as follows: $10,800 (outstanding from June) + $77,800 (issued in July) - $76,600 (cleared in July) = $12,000. The NSF check does not affect the outstanding checks calculation.

Jukebox Company Had Checks Outstanding Totaling $10,800 on Its June