Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 Line Item Description Amount Amount Cash balance according to bank statement 8,090 Add: Deposit in transit on July 31 3,890 Deduct: Outstanding checks 3,730 Deduct: Bank error in charging check as $40 instead of $400 360 Total deductions Adjusted balance $ 11,980 883 4,200 7,890 Cash balance according to company's records Adjustments: Add: Note collected by bank, including $100 interest Add: Error in recording check by Stone Systems 2,020 80 Total additions Deduct: Bank service charges Adjusted balance 30 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 Notes Receivable Interest Revenue Accounts Payable-Holland Co. July 31 Miscellaneous Expense Cash 30 30 3. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash?