Question

In the month of November, Sunland Company Inc. wrote checks in the amount of $10,280. In December, checks in the amount of $11,185 were written. In November, $8,830 of these checks were presented to the bank for payment, and $10,445 in December. What is the amount of outstanding checks at the end of November? At the end of December?

Answer 1

Answer:

$1,450; $2,190

Explanation:

Given that,

Checks written in November = $10,280

Checks presented for payment in November = $8,830

Checks written in December = $11,185

Checks presented for payment in December = $10,445

Amount of outstanding checks at the end of November:

= Checks written in November - Checks presented for payment in November

= $10,280 - $8,830

= $1,450

Amount of outstanding checks at the end of December:

= Checks written in November + Checks written in December - (Checks presented in November + Checks presented in December)

= $10,280 + $11,185 + ($8,830 + $10,445)

= $21,465 - $19,275

= $2,190