The Cash account in the ledger of Pine Golf Club shows a balance of $11,925 at December 31, 2018. The December 31 bank statement shows a balance of $10,440. The only reconciling items consist of:

Bank service charges of $32.

Deposit in transit of $1,813.

NSF check from customer L. Diamond in the amount of $126.

Error in recording check no. 970 for utilities expense: check was written in the amount of $834 but was recorded in Pine's accounting records as $384.

Outstanding checks of $936

1. Prepare a bank reconciliation for December 31st.

2. Prepare necessary journal entries to adjust Pine's Golf Club accounting records at December 31st.