The cash account in the general ledger of Lee Corporation showed a balance of $17, 500 at December 31. The company's bank statement showed a balance of $15, 200 at the same date. The only reconciling items consisted of: (1) $10,000 deposit in transit, (2) a bank service charge of $25, (3) outstanding checks totaling $8, 500, (4) a $775 check marked NSF. a. Prepare the company's December 31 bank reconciliation. b. Prepare the necessary journal entry to update the accounting records