Question

Teng Corporation received a bank statement showing a balance of $14.550 as of October 31, 2019. The firm's records showed a book balance of $14.139 on October 31. The difference between the two balances was caused by the following items 1. A debit memorandum for an NSF check from Richard Wolf for $421. 2. Three outstanding checks: Check 7017 for $121, Check 7098 for $52, and Check 7107 for $1,530, 3. A bank service charge of $17. 4. A deposit in transit of $854 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. Complete this question by entering your answers in the tabs below. Bank Rec General Journal Prepare the necessary journal entries for the year 2019. (If no entry is required for a particular transaction, select "No journal entre required in the first account field.)

Answer 1

Answer
BANK RECONCILIATION STATEMENT:
Balance as per bank statement		$      14,550
Additions:
Deposits in transit		$           854
Subtotals		$      15,404
Deductions:
Outstanding checks	$ 1,703
Total deductions		$        1,703
Adjusted balance as per bank Statement		$      13,701
Balance as per Books		$      14,139
Add:		$              -
Subtotals		$      14,139
Less:
NSF check no recorded	$    421
Service charges not recorded	$      17
Total deductions		$           438
Adjusted balance as per Books		$      13,701

Jouornal Entries:
S. no.	Accounts title and explanations	Debit $	Credit $
1	Accounts receivable Dr.	$     421
	C ash Account		$     421
2	No entry for outstanding check
3	Service charges expense Dr.	$       17
	Cash Account		$       17
4	No entry for deposit in transit

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