Question - Tang Corporation received a bank statement showing a balance of $15,700 as of June 31, 2016. The firm's records showed a book balance of $15,262 on June 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 $332.
2. Three outstanding checks: Check 7017 for $124, Check 7098 for $55, and Check 7107 for $1,560.
3. A bank service charge of $12.
4. A deposit in transit of $957.
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 2016.