Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $8,575. The bank statement indicated a balance of $11,280 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 $4,060. A deposit of $4,230, representing receipts of July 31, had been made too late to appear on the bank statement. The bank had collected $2,200 on a note left for collection. The face of the note was $2,090. A check for $800 returned with the statement had been incorrectly recorded by Stone Systems as $880. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account. A check drawn for $700 had been incorrectly charged by the bank as $70. Bank service charges for July amounted to $35. Required: Question Content Area 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 Cash balance according to bank statement blank $fill in the blank d099f9027f8104d_1 Add: Deposit in transit on July 31 $Deduct: Outstanding checks Deduct: Error in recording check by Stone Systems blank Total deductions blank fill in the blank d099f9027f8104d_8 Adjusted balance blank $fill in the blank d099f9027f8104d_9 Cash balance according to company's records blank $fill in the blank d099f9027f8104d_10 Adjustments: blank blank $Add: Note collected by bank, including $110 interest Add: Error in recording check by Stone Systems blank Total additions blank fill in the blank d099f9027f8104d_15 blank Deduct: Bank service charges Adjusted balance blank $fill in the blank d099f9027f8104d_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. 20Y5 July 31 Cash Cash Notes Payable Notes Payable Interest Revenue Interest Revenue Accounts Receivable-Holland Co. Accounts Receivable-Holland Co. July 31 Notes Payable Notes Payable Cash Cash Question Content Area 3. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash? $fill in the blank a5c159f6af9506e_1