The cash account for Stone Systems at July 31 indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:

1. Checks outstanding totaled $17,865.
2. A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement.
3. The bank had collected $6,095 on a note left for collection. The face of the note was $5,750.
4. A check for $390 returned with the statement had been incorrectly recorded by Stone Systems as $930. 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 $1,810 had been incorrectly charged by the bank as $1,180.
6. Bank service charges for July amounted to $80.

Instructions

Prepare a bank reconciliation.

Journalize the necessary entries. The accounts have not been closed.