Bank Reconciliation Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February indicated the following: Balance, February 28 $87,892 Service charge for February 100 Interest earned during February 900 NSF check from Valerie Corp. (deposited by Firebird) 660 Note ($10,000) and interest ($350) collected from a customer of Firebird’s 10,350 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 $75,790 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. 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 796ceaf8f02d02f_1 Add: fill in the blank 796ceaf8f02d02f_3 Less: fill in the blank 796ceaf8f02d02f_5 Adjusted cash balance $fill in the blank 796ceaf8f02d02f_6 Cash balance from company records $fill in the blank 796ceaf8f02d02f_7 Add: $fill in the blank 796ceaf8f02d02f_9 fill in the blank 796ceaf8f02d02f_11 fill in the blank 796ceaf8f02d02f_12 Less: $fill in the blank 796ceaf8f02d02f_14 fill in the blank 796ceaf8f02d02f_16 fill in the blank 796ceaf8f02d02f_18 fill in the blank 796ceaf8f02d02f_19 Adjusted cash balance $fill in the blank 796ceaf8f02d02f_20 2. What is the amount of cash that should be reported on the February 28 balance sheet?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	$87,892
Service charge for February	100
Interest earned during February	900
NSF check from Valerie Corp. (deposited by Firebird)	660
Note ($10,000) and interest ($350) collected from a customer of Firebird’s	10,350

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	$75,790
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.

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 796ceaf8f02d02f_1
Add:
		fill in the blank 796ceaf8f02d02f_3
Less:
		fill in the blank 796ceaf8f02d02f_5
Adjusted cash balance		$fill in the blank 796ceaf8f02d02f_6

Cash balance from company records		$fill in the blank 796ceaf8f02d02f_7
Add:
	$fill in the blank 796ceaf8f02d02f_9
	fill in the blank 796ceaf8f02d02f_11	fill in the blank 796ceaf8f02d02f_12
Less:
	$fill in the blank 796ceaf8f02d02f_14
	fill in the blank 796ceaf8f02d02f_16
	fill in the blank 796ceaf8f02d02f_18	fill in the blank 796ceaf8f02d02f_19
Adjusted cash balance		$fill in the blank 796ceaf8f02d02f_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 eacc91fa3015f7f_1

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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