The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $13,165. The bank statement indicated a balance of $16,970 on July 31, 20Y5. Comparing the bank statementand the accompanying canceled checks and memos with the records reveals the following reconciling items:a. Checks outstanding totaled $6,110.b. A deposit of $6,360, representing receipts of July 31, had been made too late to appear on the bank statement.c. The bank had collected $3,310 on a note left for collection. The face of the note was $3,140.d. A check for $600 returned with the statement had been incorrectly recorded by Stone Systems as $660. The check was for the payment of an obligation to Holland Co. for the purchase ofoffice supplies on account.e. A check drawn for $800 had been incorrectly charged by the bank as $80.f. Bank service charges for July amounted to $35.Required:1. Prepare a bank reconciliation.Stone SystemsBank ReconciliationJuly 31, 20Y5Cash balance according to bank statementTotal deductionsAdjusted balanceCash balance according to company's records Adjustments:Total additionsAdjusted balance2. 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 31July 313. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash?

The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $13,165. The bank statement indicated a balance of $16,970 on July 31, 2OYS. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: a. Checks outstanding totaled $6,110. b. A deposit of $6,360, representing receipts of July 31, had been made too late to appear on the bank statement. c. The bank had collected $3,310 on a note left for collection. The face of the note was $3,140. d. A check for $600 returned with the statement had been incorrectly recorded by Stone Systems as $660. The check was for the payment of an obligation to Holland Co. for the purchase o office supplies on account. e. A check drawn for $800 had been incorrectly charged by the bank as $80. f. Bank service charges for July amounted to $35. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20YS Cash balance according to bank statement