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The Cash account of Peter & Co. reported a balance of $2,500 at December 31, 2019. Included were outstanding cheques totalling $900 and an December 31 deposit of $500 that did not appear on the bank statement. The bank statement, which came from TD Bank, listed an December 31, 2019, balance of $3,405. Included in the bank balance was an December 30 collection of $550 on account from a customer who pays the bank directly. The bank statement also shows a $20 service charge, $10 of interest revenue that Peter & Co. earned on its bank balance, and an NSF cheque for $35.
Question 1: Prepare bank reconciliation to determine how much cash Peter & Co. actually has at December 31, 2019
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