Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20YS, indicated a balance of $7,975. The bank statement, indicated a balance of $10,040 on July 31, 2015. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items a. Checks outstanding totaled $3,610. b. A deposit of $3,770, representing receipts of July 31, had been made too late to appear on the bank statement. The bank had collected $1,960 on a note left for collection. The face of the note was $1,860. d. A check for $400 returned with the statement had been incorrectly recorded by Stone Systems as $440. 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 $300 had been incorrectly charged by the bank as $30. Bank service charges for July amounted to $45. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation. July 31, 20YS Cash balance according to bank statement Add Depest in transit on My 318 Deducti Outstanding checks Deducti Error in recording check by Stone Systems Total deductions Adjusted balance Cash balance according to company's records Adjustments 31,450 9,150 17.065 630 000 Adjusted balance Cash balance according to company's records Adjustments: 00 00 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 2015 July 31 Total additions 3. If a balance sheet were prepared for Stone Systems on July 31, 2015, what amount should be reported as cash? July 31