The Cash account of Renfro 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 Renfros customers; and

(5) a check correctly 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, Renfro 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.

B.) Determine the amount at which cash and cash equivalents will be reported in the companys balance sheet dated December 31.

C.) prepare the necessary journal entry to update the accounting records.