v Homepage | LAMC * 1 Chapter 7 HW: Internal control x C Chat - Learn with Chegg | Cheg X CengageNOWv2 | Online teachi x * Homework Help - Q&A from O x | G eBook Show Me How Question X |+ X O CA 2% v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=assignment-take&inprogress=false G H Chapter 7 HW: Internal control and eBook Show Me How Bank reconciliation and entries ? The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $8,955. The bank statement indicated a balance of $11,790 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: a. Checks outstanding totaled $4,240. . A deposit of $4,420, representing receipts of July 31, had been made too late to appear on the bank statement. C. The bank had collected $2,300 on a note left for collection. The face of the note was $2,180. d. A check for $400 returned with the statement had been incorrectly recorded by Stone Systems as $440. 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 f. Bank service charges for July amounted to $45. Required: 1. Prepare a bank reconciliation. Stone Systems Bank Reconciliation July 31, 20Y5 Line Item Description Amount Amount Cash balance according to bank statement 11,790 Add: Deposit in transit on July 31 4,420 O Deduct: Outstanding checks -4,560 Deduct: Bank error in charging check as $80 instead of $800 -720 Total deductions -4,960 Adjusted balance 10,930 Cash balance according to company's records 8,995 Adjustments: Add: Note collected by bank, including $120 interest 2,300 Add: Error in recording check by Stone Systems Total additions Deduct: Bank service charges Adjusted balance 11,250 2. 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 31 Cash 2,300 Notes Receivable 2,180 Interest Revenue July 31 Miscellaneous Expense Cash 2:58 PM Sunday Check My Work 3 more Check My Work uses remaining. Previous 9/22/2024 Assignment Score: 44.44% All work saved. Save and Exit Submit Assignment for Grading