The Cash account of Lyco Corporation showed a balance of $21,749 at December 31 prior to preparing a bank reconciliation. The companys 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 Lycos customers, and (5) a check written for office supplies in the amount of $1,832 that was incorrectly recorded by the companys bookkeeper as an increase in Office Supplies of $1,283, and a reduction in Cash of $1,283.

In addition to this information, Lyco owned the following financial assets at December 31: (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 stock investments.

a. Prepare the companys December 31 bank reconciliation.