Minor Company had checks outstanding totaling $19,200 on its April bank reconciliation. In May, Minor Company issued checks totaling $64,900. The May bank statement shows that $47,600 in checks cleared the bank in May. A check of $300 from one of Minor Company's customers was also returned marked "NSF." The amount of outstanding checks on Minor Company's May bank reconciliation should be
A) $28,400
B) $66,800
C) $17,300
D) $36,500

Question

Quizplus · Accepted Answer

The amount of outstanding checks for May can be calculated by taking the previous month's outstanding checks, adding the checks issued this month, and then subtracting the checks that cleared this month. So, $19,200 (April's outstanding checks) + $64,900 (checks issued in May) - $47,600 (checks cleared in May) = $36,500. The NSF check does not affect the calculation of outstanding checks.

Minor Company Had Checks Outstanding Totaling $19,200 on Its April