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Problem - Teng Corporation received a bank statement showing a balance of $14,250 as of October 31, 2019. The firm's records showed a book balance of $13,893 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 $415.
2. Three outstanding checks: Check 7017 for $115, Check 7098 for $46, and Check 7107 for $1,470.
3. A bank service charge of $11.
4. A deposit in transit of $848.
Required -
1. 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.
2. Prepare the adjusted bank balance section and the adjusted book balance section of the bank reconciliation statement.
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