Bank reconciliation and entries

The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $8,310. The bank statement indicated a balance of $10,920 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 $3,930.

b A deposit of $4,100, representing receipts of July 31, had been made too late to appear on the bank statement.

c The bank had collected $2,130 on a note left for collection. The face of the note was $2,020.

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 the purchase of office supplies on account.

e A check drawn for $700 had been incorrectly charged by the bank as $70.

f Bank service charges for July amounted to $30.

Stone Systems Bank Reconciliation July 31, 20 Y5 Line Item Description Cash balance according to bank statement Add: Deposit in transit on July 31 Deduct: Outstanding checks Dedjusted balance 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 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