Bank Reconciliation and Entries

The cash account for Stone Systems at July $31,20$Y$5,$ indicated a balance of $$10,175.$ The bank statement indicated a balance of $$12,760$ on July $31,20$Y$5.$ Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:

Checks outstanding totaled $$4,590.$

A deposit of $$4,790,$ representing receipts of July $31,$ had been made too late to appear on the bank statement.

The bank had collected $$2,490$ on a note left for collection. The face of the note was $$2,360.$

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.

A check drawn for $$300$ had been incorrectly charged by the bank as $$30.$

Bank service charges for July amounted to $$45.$

Required:

Question Content Area

$1.$ Prepare a bank reconciliation.

Stone Systems

Bank Reconciliation

July $31,20$Y$5$

Cash balance according to bank statement blank $fill in the blank $5379$fefe$8$fc$7002\_1$

$-$ Select $-$

$$-$ Select $-$

$-$ Select $-$

blank

Total deductions blank fill in the blank $5379$fefe$8$fc$7002\_8$

Adjusted balance blank $fill in the blank $5379$fefe$8$fc$7002\_9$

Cash balance according to company's records blank $fill in the blank $5379$fefe$8$fc$7002\_10$

Adjustments: blank blank

$$-$ Select $-$

$-$ Select $-$

blank

Total additions blank fill in the blank $5379$fefe$8$fc$7002\_15$

blank $-$ Select $-$

Adjusted balance blank $fill in the blank $5379$fefe$8$fc$7002\_18$

Question Content Area

$2.$ 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.

$20$Y$5$ July $31$

July $31$

Question Content Area

$3.$ If a balance sheet were prepared for Stone Systems on July $31,20$Y$5,$ what amount should be reported as cash?

$fill in the blank a$9294006$e$07$c$05$f$\_1$