Bank reconciliation and entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $9,995. The bank statement indicated a balance of $13,020 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 $4,690. b. A deposit of $4,880, representing receipts of July 31, had been made too late to appear on the bank statement. c. The bank had collected $2,540 on a note left for collection. The face of the note was $2,410. d. 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. e. A check drawn for $700 had been incorrectly charged by the bank as $70. f. Bank service charges for July amounted to $25. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 Line Item Description Cash balance according to bank statement Total deductions Adjusted balance Cash balance according to company's records LA Amount Amount 000

a. Check eutstandine totaled \$4,690 b. A deposit of $4,880, representing fecepts of July 31 , had been node too late to appear on the bark statement. c. The bank had collected $2,540 en a note left for collection. The face of the note was \$2,410. purchase of otfice supplies on accosint. e. A check drawn for $700 had been incorrectly charged by the bank as $70. 6. Dark service charges for luly arnounted to $25. Required: 1. Prepore a bank reconalistion, biank: 3. If a balance shect were prepared for Stone Systems on July 31,20y, whst amours should be reported as cash