The cash account for Stone Systems at July $31,20$Y$5,$ indicated a balance of $$9,410.$ The bank statement indicated a balance of $$12,480$ on July $31,20$Y$5.$ Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:

a$.$ Checks outstanding totaled $$4,490.$

b$.$ A deposit of $$4,680,$ representing receipts of July $31,$ had been made too late to appear on the bank statement.

c$.$ The bank had collected $$2,430$ on a note left for collection. The face of the note was $$2,310.$

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 $$900$ had been incorrectly charged by the bank as $$90.$

f$.$ Bank service charges for July amounted to $$50.$

Required: $$

Prepare a bank reconciliation.

Stone Systems

Bank Reconciliation July $31,20$ Y $5$

Line Item Description

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.

$20y$ July $3.30$

If a balance sheet were prepared for Stone Systems on July $31,20$Y$5,$ what amount should be reported as cash?

$$

The cash account for Stone Systems at July $31,20$Y$5,$ indicated a balance of $$9,410.$ The bank statement indicated a balance of $$12,480$ on July $31,20$Y$5.$ Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:

a$.$ Checks outstanding totaled $$4,490.$

b$.$ A deposit of $$4,680,$ representing receipts of July $31,$ had been made too late to appear on the bank statement.

c$.$ The bank had collected $$2,430$ on a note left for collection. The face of the note was $$2,310.$

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 $$900$ had been incorrectly charged by the bank as $$90.$

f$.$ Bank service charges for July amounted to $$50.$

Required:

Prepare a bank reconciliation.

Stone Systems

Bank Reconciliation July $31,20$ Y$5$

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.

$20$Y$5$ July

July $31$

$3.$ If a balance sheet were prepared for Stone Systems on July $31,20Y5,$ what amount should be reported as cash?