Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February 2019 indicated the following:
Balance, February 28, 2019 ..................................................$87,392
Service charge for February ......................................................100
Interest earned during February ..................................................875
NSF check from Valerie Corp. (deposited by Firebird) ..................... 630
Note ($12,000) and interest ($350) collected from
a customer of Firebird's .......................................................12,350
An analysis of canceled checks and deposits and the records of Firebird Corp. revealed the following items:
Checking account balance per Firebird's books ........................ $73,260
Outstanding checks as of February ...................................... 28 6,440
Deposit in transit at February ............................................. 28 4,785
Error in recording check 7853 issued by Firebird ............................ 18
The correct amount of check #7853 is $797. It was recorded as a cash disbursement of $779 by mistake. The check was issued to pay for merchandise purchases. The check appeared on the bank statement correctly.
Required:
1. Prepare a bank reconciliation schedule at February 28, 2019, in proper form.
2. What is the amount of cash that should be reported on the February 28, 2019 balance sheet?