Question

McKeel Publishing had outstanding checks totaling $5,400 on its June bank reconciliation. In July, McKeel issued checks totaling $38,900. The July bank statement shows that $26,300 in checks cleared the bank in July. The amount of outstanding checks on McKeel's July bank reconciliation should be:

Answer 1

The amount of outstanding checks on McKeel's July bank reconciliation should be $18,000

Step-by-step explanation:

The computation of the amount of outstanding checks is shown below:

= Outstanding Checks balance of June + issued checks in the month of July - check cleared in the month of July

= $5,400 + $38,900 - $26,300

= $18,000

For computing the accurate balance, we deducted the cleared checks and added the issued checks in the June balance of the outstanding checks