Response to the following:
1. Elkins Company had checks outstanding totaling $5,400 on its June bank reconciliation. In July, Elkins Company issued checks totaling $38,900. The July bank statement shows that $26,300 in checks cleared the bank in July. A check from one of Elkins Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Elkins Company's July bank reconciliation should be
A)$18,000.
B)$17,700.
C)$7,200.
D)$12,600.
2.Gagne Company gathered the following reconciling information in preparing its July bank reconciliation:
Cash balance per books, 7/31 $4,500
Deposits-in-transit 150
Notes receivable and interest collected by bank 850
Bank charge for check printing 20
Outstanding checks 2,000
NSF check 170
The adjusted cash balance per books on July 31 is
A)$3,460.
B)$3,310.
C)$5,160.
D)$5,010.
Provide step by step calculations.