The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $7,855. The bank statement indicated a balance of $10,510 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: Checks outstanding totaled $3,780. A deposit of $3,940, representing receipts of July 31, had been made too late to appear on the bank statement. The bank had collected $2,050 on a note left for collection. The face of the note was $1,940. A check for $800 returned with the statement had been incorrectly recorded by Stone Systems as $880. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account. A check drawn for $800 had been incorrectly charged by the bank as $80. Bank service charges for July amounted to $35. Required: Question Content Area 1. Prepare a bank reconciliation.