Question

McKeel Publishing had outstanding checks totaling $5,540 on its June bank reconciliation. In July, McKeel issued checks totaling $40,300. The July bank statement shows that $28,400 in checks cleared the bank in July. The amount of outstanding checks on McKeel's July bank reconciliation should be:

Answer 1

Answer:

$17,440

Explanation:

Given that,

Outstanding checks in June Bank Reconciliation = $5,540

Checks issued during July = $40,300

Checks cleared in July = $28,400

Amount of outstanding checks:

= Outstanding checks in June Bank Reconciliation + Checks issued during July - Checks cleared in July

= $5,540 + $40,300 - $28,400

= $17,440

Therefore, the amount of outstanding checks on McKeel's July bank reconciliation should be $17,440.