Response to the following problem:
The bank statement of M. C. Johnson Company indicates a balance of $7,428 as of July 31. The balance of the Cash account in Johnson's ledger as of that date is $6,872. Johnson's accountant has taken the following steps:
STEP 1. Verified that canceled checks were recorded correctly on the bank statement.
STEP 2. Noted that the deposit made on July 31 was not recorded on the bank statement, $2,071.
STEP 3. Noted outstanding checks: no. 1066, $1,075; no. 1099, $462; no. 1100, $605.
STEP 4. Noted credit memo: Note collected by the bank from L. Stewart, $500, not recorded in the journal. Noted debit memo: Collection charge and service charge not recorded in the journal, $15.