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Bank Reconciliation Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February indicated the following: Balance, February 28 $87,292

Bank Reconciliation

Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February indicated the following:

Balance, February 28 $87,292
Service charge for February 100
Interest earned during February 900
NSF check from Valerie Corp. (deposited by Firebird) 620
Note ($12,000) and interest ($350) collected from a customer of Firebirds 12,350

Upon receiving the bank statement, Firebird's accountants analyzed its cash transactions for possible reconciling items between its cash balance per books and the bank statement:

Checking account balance per Firebirds books $73,120
Outstanding checks as of February 28 6,440
Deposit in transit at February 28 4,780
Error in recording check 7853 issued by Firebird 18

The correct amount of check 7853 is $697. It was recorded as a cash disbursement of $679 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 in proper form at February 28.

Firebird Corp. Bank Reconciliation February 28
Cash balance from bank statement $fill in the blank 0e6cb4023055fd7_1
Add:

Deposit in transitInterest earned during FebruaryNSF checkOutstanding checksRecording error

- Select -
Less:

Deposit in transitInterest earned during FebruaryNSF checkOutstanding checksRecording error

- Select -
Adjusted cash balance $fill in the blank 0e6cb4023055fd7_6
Cash balance from company records $fill in the blank 0e6cb4023055fd7_7
Add:

Deposit in transitInterest earned during FebruaryNSF checkOutstanding checksService charge

$- Select -

Deposit in transitNote and interest collectedNSF checkOutstanding checksService charge

- Select - - Select -
Less:

Deposit in transitInterest earned during FebruaryNote and interest collectedOutstanding checksRecording error

$- Select -

Deposit in transitInterest earned during FebruaryNote and interest collectedOutstanding checksService charge

- Select -

Deposit in transitInterest earned during FebruaryNote and interest collectedNSF checkOutstanding checks

- Select - - Select -
Adjusted cash balance $fill in the blank 0e6cb4023055fd7_20

2. What is the amount of cash that should be reported on the February 28 balance sheet?

Amount of cash reported on the February 28 balance sheet $fill in the blank ebec38f63074068_1

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