Question
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.
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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