Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for May 2009
Question:
Firebird Corp. prepares monthly bank reconciliations of its checking account balance.
The bank statement for May 2009 indicated the following:
Balance, May 31, 2009 ................$29,700
Service charge for May ................ 80
Interest earned during May ................ 120
NSF check from Valerie Corp. (deposited by Firebird) .... 230
Note ($4,000) and interest ($100) collected for
Firebird from a customer of Firebird’s ........... 4,100
An analysis of canceled checks and deposits and the records of Firebird Corp. revealed the following items:
Checking account balance per Firebird’s books .........$26,040
Outstanding checks as of May 31 ............................... 2,950
Deposit in transit at May 31 ........................................ 3,110
Error in recording check #4456 issued by Firebird ....... 90
The correct amount of check #4456 is $760. It was recorded as a cash disbursement of $670 by mistake. The check was issued to pay for merchandise purchases. The check appeared on the bank statement correctly.
Required:
Prepare a bank reconciliation schedule at May 31, 2009, in proper form.
Step by Step Answer:
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger