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Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31,20 Y5 Line Item Description Amount Amount Cash balance according to bank statement Total deductions Adjusted balance Cash balance according to company's records Adjustments: Total additions Adjusted balance 2. Journalize the necessary entales (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. 3. If a balance sheet were prepored for Stone Systems on July 31,20 Y5, what amount should be reported as cash? Bank reconciliation and entries. The cash account for stone Systems at July 31,205, indicated a balance of $7,900. The bank statement indicated a balance of $10,660 on July 31,205. Comparing the bank statement and the accompanying canceled checks and memos with the records reveaks the following reconciling items: a. Checks outstanding totaled $3,840. b. A deposit of $4,000, representing recelpts of July 31 , had been made too late to appear on the bank statement. c. The bank had collected $2,080 on a note left for collection. The face of the note was $1,970. d. A check for $600 retumed with the statement had been incorrectly recorded by Stone Systems as $660. The check wos for the payment of an obligation Holland Co0, for the purchase of office suppttes 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 $30

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