Hot Sox Company had checks outstanding totaling $18,200 on its June bank reconciliation. In July, Hot Sox Company issued checks totaling $78,900. The July bank statement shows that $71,400 in checks cleared the bank in July. A check from one of Hot Sox Company's customers in the amount of $2,200 was also returned marked "NSF." The amount of outstanding checks on Hot Sox Company's July bank reconciliation should be

Question

Quizplus · Accepted Answer

To calculate the outstanding checks on the July bank reconciliation, we need to add the outstanding checks from June to the checks issued in July and then subtract the checks that cleared in July. We also need to subtract the returned check amount. 
Outstanding checks from June: $18,200 
Checks issued in July: $78,900 
Checks cleared in July: $71,400 
Returned check amount: -$2,200 
Therefore, outstanding checks on July bank reconciliation: 
$18,200 + $78,900 - $71,400 - $2,200 = $25,700

Hot Sox Company Had Checks Outstanding Totaling $18,200 on Its