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11 March, 22:34

In the month of May, Kijak Company Inc. wrote checks in the amount of $28,000. In June, checks in the amount of $38,000 were written. In May, $25,000 of these checks were presented to the bank for payment, and $33,000 in June. What is the amount of outstanding checks at the end of June?

A) $3,000

B) $5,000

C) $8,000

D) $10,000

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Answers (1)
  1. 11 March, 23:03
    0
    The correct answer is option (c).

    Explanation:

    According to the scenario, the computation of the given data are as follows:

    Checks written, May = $28,000

    Checks written, June = $38,000

    So, Total checks written in May and June = $28,000 + $38,000

    = $66,000

    And Checks presented, May = $25,000

    Checks presented, June = $33,000

    So, Total checks presented in May and June = $25,000 + $32,000

    = $58,000

    So, we can calculate the outstanding amount at the end of June by using following formula:

    Amount at the end of June = Total checks written - Total checks presented

    = $66,000 - $58,000

    = $8,000.
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