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Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February 2019 indicated the following: Balance, February 28, 2019 Service

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Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February 2019 indicated the following: 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 $87,392 100 875 630 12,350 An analysis of canceled checks and deposits and the records of Firebird Corp. revealed the following items: $73,260 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 6,440 4,785 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: Deposit in transit Less: Outstanding checks Adjusted cash balance Cash balance from company records Add: Interest earned during February Note and interest collected | 1 000 0 Less: Recording error Service charge NSF check 0 Adjusted cash balance Feedback 2. What is the amount of cash that should be reported on the February 28, 2019 balance sheet

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