eBook Print Item Bank Reconciliation Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February indicated the following: Balance, February 28 $87,392 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 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 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 in proper form at February 28. Firebird Corp. Bank Reconciliation February 28 Cash balance from bank statement $fill in the blank 8dea41f9f06afe9_1 Add: fill in the blank 8dea41f9f06afe9_3 Less: fill in the blank 8dea41f9f06afe9_5 Adjusted cash balance $fill in the blank 8dea41f9f06afe9_6 Cash balance from company records $fill in the blank 8dea41f9f06afe9_7 Add: $fill in the blank 8dea41f9f06afe9_9 fill in the blank 8dea41f9f06afe9_11 fill in the blank 8dea41f9f06afe9_12 Less: $fill in the blank 8dea41f9f06afe9_14 fill in the blank 8dea41f9f06afe9_

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter4: Internal Control And Cash

Section: Chapter Questions

Problem 16CE

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Bank Reconciliation

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

Balance, February 28	$87,392
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

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 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 in proper form at February 28.

Firebird Corp.
Bank Reconciliation
February 28
Cash balance from bank statement		$fill in the blank 8dea41f9f06afe9_1
Add:
		fill in the blank 8dea41f9f06afe9_3
Less:
		fill in the blank 8dea41f9f06afe9_5
Adjusted cash balance		$fill in the blank 8dea41f9f06afe9_6

Cash balance from company records		$fill in the blank 8dea41f9f06afe9_7
Add:
	$fill in the blank 8dea41f9f06afe9_9
	fill in the blank 8dea41f9f06afe9_11	fill in the blank 8dea41f9f06afe9_12
Less:
	$fill in the blank 8dea41f9f06afe9_14
	fill in the blank 8dea41f9f06afe9_16
	fill in the blank 8dea41f9f06afe9_18	fill in the blank 8dea41f9f06afe9_19
Adjusted cash balance		$fill in the blank 8dea41f9f06afe9_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 a35be703ef93fad_1

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