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?

Question

Quizplus · Accepted Answer

To find the amount of outstanding checks, we need to subtract the amount of checks presented for payment from the total amount of checks written:

Outstanding checks = (total checks written) - (checks presented for payment)

In May, $50,000 of the $56,000 in checks written were presented for payment, leaving $6,000 in outstanding checks.

In June, $66,000 of the $76,000 in checks written were presented for payment, leaving:

Outstanding checks = ($76,000 - $66,000) + $6,000 
Outstanding checks = $10,000 + $6,000
Outstanding checks = $16,000

Therefore, the amount of outstanding checks at the end of June is $16,000.

The best choice is C.

In the Month of May, Kijak Company Inc