In the month of May, Kijak Company Inc. wrote checks in the amount of $56,000. In June, checks in the amount of $76,000 were written. In May, $50,000 of these checks were presented to the bank for payment, and $66,000 in June. What is the amount of outstanding checks at the end of June?
A) $6,000
B) $10,000
C) $16,000
D) $20,000

Question

Quizplus · Accepted Answer

Outstanding checks are the checks that have been written and recorded but have not yet cleared the bank account. To calculate the outstanding checks, we need to subtract the total checks cleared from the total checks written.

Total checks written in May = $56,000
Total checks cleared in May = $50,000
Total checks written in June = $76,000
Total checks cleared in June = $66,000

Total outstanding checks = Total checks written - Total checks cleared
= ($56,000 + $76,000) - ($50,000 + $66,000)
= $132,000 - $116,000
= $16,000

Therefore, the amount of outstanding checks at the end of June is $16,000, so the best choice is C.

In the Month of May, Kijak Company Inc