Cornerstone Exercise 4-16 Bank Reconciliation Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February 2019 indicated the following: $87,392 100 Balance, February 28, 2019 Service charge for February Interest earned during February NSF check from Valerie Corp. (deposited by Firebird) Note ($12,000) and interest ($350) collected from a customer of Firebird's 875 630 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 Outstanding checks as of February 28 Deposit in transit at February 28 Error in recording check 7853 issued by Firebird $73,260 6,440 4,785 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. Firebird Corp. Bank Reconciliation Deposit 18 Error in recording check 7853 issued by Firebird 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. Firebird Corp. Bank Reconciliation February 28, 2019 Cash balance from bank statement Add: Less: Adjusted cash balance Cash balance from company records Add: Less: Previous Next 1. Prepare a bank reconciliation schedule at February 28, 2019, in proper form. Firebird Corp. Bank Reconciliation February 28, 2019 Cash balance from bank statement Add: Less: Adjusted cash balance Cash balance from company records Add: Less: Adjusted cash balance $ 2. What is the amount of cash that should be reported on the February 28, 2019 balance sheet