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Question - Teng Corporation received a bank statement showing a balance of $14,750 as of October 31, 2019. The firm's records showed a book balance of $14.303 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 $425.
2. Three outstanding checks: Check 7017 for $125. Check 7098 for $56, and Check 7107 for $1,570.
3. A bank service charge of $21.
4. A deposit in transit of $858.
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.
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