Bank reconciliation and entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $11,940. The bank statement indicated a balance of $15,100 on July 31,20Y5 Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: a. Checks outstanding totaled $5,440. b. A deposit of $5,660, representing receipts of July 31 , had been made too late to appear on the bank statement c. The bank had collected $2,940 on a note left for collection. The face of the note was $2,790. d. A check for $500 returned with the statement had been incorrectly recorded by Stone Systems as $550. The check was for the payment of an obligation to Holland Co for ine purchase of office supplies on account. e. A check drawn for $500 had been incorrectly charged by the bank as $50. f. Bank service charges for July amounted to $60. Required: 1. Prepare a bank reconciliation. 2 more Check My Work uses remaining. Previous Stone Systems Bank Reconciliation July31,20Y5 Line ftem Description Amount Amount Cash balance according to bank statement Total deductions Adjusted balance Cash balance according to company's records Adjustments: Total additions 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 if blank. 3. If a balance sheet were prepared for Stone Systems on July 31,20Y5, what amount should be reported as cash