Question

McKeel Publishing had outstanding checks totaling $7,560 on its June bank reconciliaon. In July, McKeel issued checks totaling $54,460. The July bank statement shows that $36,820 in checks cleared the bank in July. The amount of outstanding checks on McKeel's July bank reconciliaon should be:

A.$17,640.
B. $25,200.
C.$7,560.
D. $10,080.

Answer 1

The outstanding checks on McKeel Publishing's July bank reconciliation amount to $25,200. The correct answer is B.

Step-by-step explanation:

The calculation of outstanding checks for McKeel Publishing's July bank reconciliation involves the outstanding checks from June, the total checks issued in July, and the checks that cleared in July. Starting with the outstanding checks from June totaling $7,560, we add the checks issued in July, amounting to $54,460.

Determined by adding the June outstanding checks to the July issued checks and subtracting the checks that cleared in July. From this total, we subtract the checks cleared in July totaling $36,820.

The calculation would be as follows: $7,560 (outstanding from June) + $54,460 (issued in July) - $36,820 (cleared in July) = $25,200. Therefore, the amount of outstanding checks on McKeel's July bank reconciliation should be $25,200, which corresponds to option B.