Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 2045, indicated a balance of $7,730. The bank statement indicated a balance of $10,130 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: . Checks outstanding totaled $3,650. . A deposit of $3,800, representing receipts of July 31, had been made too late to appear on the bank statement. . The bank had collected $1,980 on a note left for collection. The face of the note was $1,870. 1. A check for $700 returned with the statement had been incorrectly recorded by Stone Systems as $770. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account. 2. A check drawn for $600 had been incorrectly charged by the bank as $60. f. Bank service charges for July amounted to $40. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 2015 Cash balance according to bank statement Add: Deposit in transit on July 31 Deduct: Outstanding checks $ 7,730 3,800 -10,130 Deduct: Bank error in charging check as $60 instead of $600 Total deductions Adjusted balance 10,130 Cash balance according to company's records Adjustments: Add: Note collected by bank, including $110 interest Add: Error in recording check by Stone Systems Total deductions Adjusted balance 10,130 Cash balance according to company's records Adjustments: Add: Note collected by bank, including $110 interest Add: Error in recording check by Stone Systems Total additions Deduct: Bank service charges 40 Adjusted balance 2. 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. 20Y5 July 31 Cash Interest Receivable Interest Revenue Accounts Payable-Holland Co. July 31 Miscellaneous Expense Cash 3. If a balance sheet were prepared for Stone Systems on July 31, 2045, what amount should be reported as cash