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Bank reconciliation and entries

The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $9,395. The bank statement indicated a balance of $12,250 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:

1. Checks outstanding totaled $4,410.
2. A deposit of $4,590, representing receipts of July 31, had been made too late to appear on the bank statement.
3. The bank had collected $2,390 on a note left for collection. The face of the note was $2,270.
4. A check for $600 returned with the statement had been incorrectly recorded by Stone Systems as $660. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account.
5. A check drawn for $700 had been incorrectly charged by the bank as $70.
6. Bank service charges for July amounted to $45.

Required:

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1. Prepare a bank reconciliation.