Exercise 9.4 (Algo) Determining an adjusted bank balance. LO 9-5, 9-6

Exercise 9.4 (Algo) Determining an adjusted bank balance. LO 9-5, 9-6 Teng Corporation received a bank statement showing a balance of $14,900 as of October 31, 20X1. The firm's records showed a book balance of $14,426 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 $428. 2. Three outstanding checks: Check 7017 for $128, Check 7098 for $59, and Check 7107 for $1,600. 3. A bank service charge of $24. 4. A deposit in transit of $861. 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 Bank Reconciliation Statement October 31, 20X1 $ Balance on bank statement Additions: Deposit in transit Deductions for outstanding checks: Check 7017 Check 7098 Check 7107 Total outstanding checks Adjusted bank balance Balance in books Deductions: Adjusted book balance SA 128 59 1,600 $ $ LA $ $ $ 14,900 861 15,761 1,787 13,974 14,426 0 14,426 Gonera View transaction list 1 Record the returned check. 2 Record the outstanding checks. 3 Record the bank service charge. 4 Record the deposit in transit. Note : = journal entry has been entered Record entry Clear entry ****** :X: ****** EX View