firebird corp prepares monthly bank reconciliations of its chec 269850

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.