In the Month of November (Its First Period of Operations)

question 87

Multiple Choice

In the month of November (its first period of operations) Gavin Company Inc.wrote checks in the amount of $55500.In December checks in the amount of $75948 were written.During November $50808 of these checks were presented to the bank for payment and $65298 during December.What is the amount of outstanding checks at the end of December?

• A)$10650.
• B)$15342.
• C)$4692.
• D)$21300.

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Definitions:

Debit Balance

A debit balance occurs when the total of debits in an account exceeds the total of credits, commonly seen in asset and expense accounts.

Credit Balance

A situation in an account where the total credits exceed the total debits, indicating a positive balance.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor.

Journal Entry

A record in accounting that notes the details of a financial transaction in the ledger.