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: 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
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: 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February 2019 indicated the following: 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 |

Transcribed Image Text: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:
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
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