Firebird Corp prepares monthly bank reconciliations of its

checking account #2321

Firebird Corp prepares monthly bank reconciliations of its checking account

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

Balance, February 28, 2019 ..................................................$87,392

Service charge for February ......................................................100

Interest earned during February ..................................................875

NSF check from Valerie Corp. (deposited by Firebird) ..................... 630

Note ($12,000) and interest ($350) collected from

a customer of Firebird's .......................................................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 ........................ $73,260

Outstanding checks as of February ...................................... 28 6,440

Deposit in transit at February ............................................. 28 4,785

Error in recording check 7853 issued by Firebird ............................ 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.

2. What is the amount of cash that should be reported on the February 28, 2019 balance sheet?

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 Firebird Corp prepares monthly bank reconciliations of its checking account

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