Teng Corporation received a bank statement showing a balance

Teng Corporation received a bank statement showing a balance of $15,700 as of October 31, 2019. The firm’s records showed a book balance of $15,262 on October 31. The difference between the two balances was caused by the following items.

A debit memorandum for an NSF check from Richard Wolf for $332.

Three outstanding checks: Check 7017 for $124, Check 7098 for $55, and Check 7107 for $1,560.

A bank service charge of $12.

A deposit in transit of $957.

Prepare the adjusted bank balance section and the adjusted book balance section of the bank reconciliation statement. Prepare the necessary journal entries for the year 2019.

JourmaI Prepare the adjusted bank balance section and the adjusted book ba TENG CORPORATION Bank Reconciliation Statement October 31, 2019 Balance on bank statement Additions: Book Deductions: Hint erences Total deductions Adjusted bank balance Balance in books Additions Deductions Adjusted book balance

Solution

Bank Reconciliation Statement October 31, 2019 Balance on bank statement 15700 Additions: Deposit in transit 957 16657 Deductions: Check 7017 124 Check 7098 55 Check 7107 1560 Total deductions 1739 Adjusted bank balance 14918 Balance in books 15262 Deductions: NSF check from Richard Wolf 332 Bank service charge 12 344 Adjusted book balance 14918 2 Oct-31-19 Accounts receivable-Richard Wolf 332           Cash 332 Oct-31-19 No journal entry required Oct-31-19 Bank service charge expense 12           Cash 12 Oct-31-19 No journal entry required