In the month of May Kayak Company Inc. wrote checks in the amount of $65000. In June checks in the amount of $67000 were written. In May $60000 of these checks were presented to the bank for payment and $66000 in June. What is the amount of outstanding checks at the end of June?
A) $5000
B) $1000
C) $6000
D) $2000

Question

Quizplus · Accepted Answer

Outstanding checks are checks that have been written but not yet presented to the bank for payment. To find the amount of outstanding checks, we need to subtract the total checks presented for payment from the total checks written.

Total checks written in May = $65000
Total checks presented in May = $60000
Outstanding checks at the end of May = $65000 - $60000 = $5000

Total checks written in June = $67000
Total checks presented in June = $66000
Outstanding checks at the end of June = $67000 - $66000 + $5000 = $6000

Therefore, the answer is C) $6000.

In the Month of May Kayak Company Inc