Bank Cast LO2, L. BRIEF EXERCISE 7.2 The Cash account in the general ledger of Lyco Corporation showed a balance of $21,749 at 31 December (but prior to performing a bank reconciliation). The company's bank statement showed a balance of $22,000 at the same date. The only reconciling items consisted of: (1) a $5,000 deposit in transit, (2) a bank service charge of $200, (3) outstanding checks totaling $9,000, (4) a $3,000 check marked "NSF from Susque Company, one of Lyco's customers, and (5) a check written for office supplies in the amount of $1,832, recorded by the company's bookkeeper as a debit to Office Supplies of $1,283, and a credit to In addition to the above information, Lyco owned the following financial assets at 31 December: (1) a money market account of $60,000, (2) $3,000 of high-grade, 120-day commercial paper, and (3) $5,000 of highly liquid investments. a. Prepare the company's 31 December bank reconciliation. b. Determine the amount at which cash and cash equivalents will be reported in the company's statement of financial position dated 31 December. Prepare the necessary journal entry to update the accounting records. Cash of $1,283 . C. oghout the Fa