Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31,2013.
$\begin{array}{ll}
\text { Cash balance according to the general ledger } & ? \
\text { Bank statement balance } & \$ 18,500 \
\text { Outstanding checks } & 2,700 \
\text { Customer's bounced check } & 350 \
\text { Bank service charges } & 100 \
\text { Deposits in transit } & 1,000 \
\text { Interest earned on the checking account } & 60
\end{array}$
-Refer to Dance Town Academy.How will the outstanding checks be handled on a bank reconciliation?

Question

Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31,2013.
$\begin{array}{ll}
\text { Cash balance according to the general ledger } & ? \
\text { Bank statement balance } & \$ 18,500 \
\text { Outstanding checks } & 2,700 \
\text { Customer's bounced check } & 350 \
\text { Bank service charges } & 100 \
\text { Deposits in transit } & 1,000 \
\text { Interest earned on the checking account } & 60
\end{array}$ 
-Refer to Dance Town Academy.How will the outstanding checks be handled on a bank reconciliation?

Quizplus · Accepted Answer

Outstanding checks are subtracted from the bank statement balance because they have been recorded in the company's books but have not yet cleared the bank.

Dance Town Academy the Items Listed Below Were Identified While