Tunes Company had checks outstanding totaling $12800 on its June bank reconciliation. In July Tunes Company issued checks totaling $78700. The July bank statement shows that $76600 in checks cleared the bank in July. A check from one of Tunes Company's customers in the amount of $1600 was also returned marked "NSF." The amount of outstanding checks on Tunes Company's July bank reconciliation should be
A) $2100.
B) $13300.
C) $14900.
D) $16500.

Question

Quizplus · Accepted Answer

Starting with the outstanding checks from June:

Outstanding Checks from June = $12800

Adding the checks issued in July:

Checks Issued in July = $78700

Total = $91500

Subtracting the checks that cleared the bank in July:

Checks Cleared in July = $76600

Total = $14900

Subtracting the NSF check:

NSF Check = $1600

Total Outstanding Checks = $13300

Therefore, the amount of outstanding checks on Tunes Company's July bank reconciliation should be $13300.

Tunes Company Had Checks Outstanding Totaling $12800 on Its June