Kimmel, Financial Accounting, 8e Help I CES CALCULATOR Exercise 7-7 Your answer

Question

Kimmel, Financial Accounting, 8e Help I CES CALCULATOR Exercise 7-7 Your answer is partially correct. Thy again. At April 30, the bank reconciliation of Oriole Company shows three outstanding checks: No. 254 $715, No. 25s $735, and No. 257 $430. The May bank statement and the May cash payments journal are given here. udy Checks Paid 5-4 5-2 5-17 258 5-12 259 5-20 260 5-29 263 5-30 262 Date Check No. Amount $715 430 178 350 1,205 525 820 254 Journal Checks Issued Date Check No. Amount 5-2 5-5 5-10 260 5-15 261 5-22 262 5-24 263 $178 350 1,205 490 259 5-29264 385 Using step 2 in the reconciliation procedure, list the outstanding checks at May 31 Amount 28

Explanation / Answer

SOLUTION

-First, compare the outstanding checks on April 30 to the bank statement, to see if they cleared in May. Cheque no. 254 and 257 cleared, but 255 for $735 did not clear in May, so it stays on the outstanding checks list.

Next, compare the checks recorded in the May cash payments journal to the bank statement to see if they cleared in May. Any that did not clear in May go on the outstanding checks list.

Outstanding Checks-

No. Amount ($) 255 735 261 490 264 385 Total 1,610

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