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prepare a bank reconciliation with the following information DATA Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February
prepare a bank reconciliation with the following information
DATA | ||
Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February indicated the following: | ||
Balance, February 28 | $87,492 | |
Service charge for February | 100 | |
Interest earned during February | 850 | |
NSF check from Valerie Corp. (deposited by Firebird) | 620 | |
Note and interest collected from a customer of Firebirds | 14,350 | |
Upon receiving the bank statement, Firebirds 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 | $71,400 | |
Outstanding checks as of February 28 | 6,440 | |
Deposit in transit at February 28 | 4,810 | |
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. |
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