On Eli Corp's June bank reconciliation, cheques outstanding totaled $5,400. In July, the corporation issued cheques totaling $38,900. The July bank statement shows that $26,300 in cheques cleared the bank in July. A cheque from one of Eli Corp's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding cheques on Eli's July bank reconciliation should be

Question

Quizplus · Accepted Answer

Outstanding cheques in June: $5,400Cheques issued in July: $38,900Cheques cleared in July: $26,300Outstanding cheques at the end of July = Outstanding cheques from June + Cheques issued in July - Cheques cleared in July= $5,400 + $38,900 - $26,300 = $18,000. The NSF cheque does not affect the calculation of outstanding cheques.

On Eli Corp's June Bank Reconciliation, Cheques Outstanding Totaled $5,400