Minor Company had checks outstanding totaling $19,200 on its April bank reconciliation. In May, Minor Company issued checks totaling $64,900. The May bank statement shows that $47,600 in checks cleared the bank in May. A check from one of Minor Company's customers of $300 was also returned marked "NSF." The amount of outstanding checks on Minor Company's May bank reconciliation should be
A) $28,400
B) $36,800
C) $17,300
D) $36,500

Question

Quizplus · Accepted Answer

Amount of outstanding checks on the May bank reconciliation = Outstanding checks appearing on the April bank reconciliation + Checks issued in May - Checks cleared in May = $19,200 + $64,900 - $47,600 = $36,500

Minor Company Had Checks Outstanding Totaling $19,200 on Its April