irebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February 2013 indicated the following:

eBook Video Cornerstone Exercise 4-16 Bank Reconciliation Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February 2013 indicated the following: Balance, February 28, 2013 Service charge for February Interest eamed during February NSF check from Valerie Corp. (deposited by Firebird) Note ($12,000) and interest (S350) collected from S87,392 100 875 630 a customer of Firebird's 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 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