Teng Corporation received a bank statement showing a balance of $14,600 as of October 31, 20X1....

Transcribed Image Text:

Teng Corporation received a bank statement showing a balance of $14,600 as of October 31, 20X1. The firm's records showed a book balance of $14,180 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 $422. 2. Three outstanding checks. Check 7017 for $122, Check 7098 for $53, and Check 7107 for $1,540 3. A bank service charge of $18. 4. A deposit in transit of $855 Required: 1. Prepare the adjusted bank balance section and the adjusted book balance section of the bank reconciliation statement. 2. Prepare the necessary journal entries for the year 20X1. Teng Corporation received a bank statement showing a balance of $14,600 as of October 31, 20X1. The firm's records showed a book balance of $14,180 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 $422. 2. Three outstanding checks. Check 7017 for $122, Check 7098 for $53, and Check 7107 for $1,540 3. A bank service charge of $18. 4. A deposit in transit of $855 Required: 1. Prepare the adjusted bank balance section and the adjusted book balance section of the bank reconciliation statement. 2. Prepare the necessary journal entries for the year 20X1.

Answer rating: 100% (QA)

1 Adjusted Bank Balance Section Bank Statement Balance 14600 Add Deposit in Transit 855 Adj... View the full answer