Question

At April 30, the bank reconciliation of Back 40 Company shows three outstanding checks: No. 254 $650, No. 255 $700, and No. 257 $410. The May bank statement and the May cash payments record are given here. Bank Statement Checks Paid Date Check No. Amount 5-4 254 $650 5-2 257 410 5-17 258 159 5-12 259 275 5-20 260 925 5-29 263 480 5-30 262 750 Cash Payments Journal Checks Issued Date Check No. Amount 5-2 258 $159 5-5 259 275 5-10 260 925 5-15 261 500 5-22 262 750 5-24 263 480 5-29 264 360 Using step 2 in the reconciliation procedure, list the outstanding checks at May 31.

Answer 1

Answer:

$1,560

Explanation:

The computation of the outstanding checks on May 31 is shown below:

= Outstanding checks number 255 +  Outstanding checks number 261 +  Outstanding checks number 264

= $700 + $500 + $360

= $1,560

Simply we added the outstanding checks so that the final amount could come

All other information that is mentioned in the question is not relevant. Hence, ignored it