Jordan Corporation received a bank statement showing a balance of $14,650 as of October 31, 20X1. The firms records showed a book balance of $14,221 on October 31. The difference between the two balances was caused by the following items.

1. A debit memorandum for an NSF check from James West for $423.
2. Three outstanding checks: Check 7017 for $123, Check 7098 for $54, and Check 7107 for $1,550.
3. A bank service charge of $19.
4. A deposit in transit of $856 on October 31.

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.