Bank Reconciliation and Entries

The cash account for Stone Systems at July $31$ indicated a balance of $$17,750.$ The

bank statement indicated a balance of $$33,650$ on July $31.$ Comparing the bank

statement and the accompanying canceled checks and memos with the records

reveals the following reconciling items:

a$.$ Checks outstanding totaled $$17,865.$

b$.$ A deposit of $$9,150,$ representing receipts of July $31,$ had been made too late to

appear on the bank statement.

c$.$ The bank had collected $$6,095$ on a note left for collection. The face of the note

was $$5,750.$

d$.$ A check for $$390$ returned with the statement had been incorrectly recorded by

Stone Systems as $$930.$ The check was for the payment of an obligation to

Holland Co$.$ for the purchase of office supplies on account.

e$.$ A check drawn for $$1,810$ had been incorrectly charged by the bank as $$1,180.$

f$.$ Bank service charges for July amounted to $$80.$

Required:

Prepare a bank reconciliation.

Stone Systems

Bank Reconciliation

July $31$

Cash balance according to bank statement

Adjusted balance

Cash balance according to company's records

Journalize the necessary entries $($a$.)$ that increase cash and $($b$.)$ that decrease

cash. The accounts have not been closed. If an amount box does not require an

entry, leave it blank.

July $31$

If a balance sheet is prepared for Stone Systems on July $31,$ what amount

should be reported as cash?

$