Q1) Following information is available to help you in preparing bank reconciliation for Frank Industries for September 2009. All cash receipts are banked intact twice a week (Wednesday and Saturday) and all the payments are made by check. Firm's ledger account for cash and bank statement for September 2009 are available below. Listed on August 2009 bank reconciliation were unpresented checks # 727 for $3,200, #735 for $2,200 and #736 for $800.
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BANK STATEMENT
|
|
Date
|
Details
|
Checks
|
Deposits
|
Balance
|
|
Aug. 31
|
|
|
|
$33,200
|
|
Sept. 2
|
#739
|
300
|
6,200
|
39,100
|
|
Sept. 4
|
#735
|
2,200
|
|
36,900
|
|
Sept. 7
|
#742
|
600
|
5,400
|
41,700
|
|
Sept. 10
|
#727
|
3,200
|
|
|
|
|
#741
|
1,600
|
8,900
|
45,800
|
|
Sept. 11
|
#740
|
2,100
|
|
43,700
|
|
Sept. 14
|
NSF Check 9/7/09
|
650
|
5,200
|
|
|
|
Fee on NSF check
|
30
|
|
48,220
|
|
Sept. 16
|
#744
|
3,700
|
6,700
|
51,220
|
|
Sept. 18
|
#745
|
5,400
|
|
45,820
|
|
Sept. 21
|
#743
|
7,600
|
6,200
|
44,420
|
|
Sept. 23
|
|
|
3,800
|
48,220
|
|
Sept. 29
|
#748
|
4,300
|
4,200
|
48,120
|
|
Sept. 30
|
Interest
|
|
20
|
|
|
|
Bank service fees
|
60
|
|
48,080
|
|
Cash
|
|
Balance 9/1/09
|
27,000
|
9/2/2009
|
Check #739
|
300
|
|
9/2/2009
|
6,200
|
9/4/2009
|
#740
|
2,100
|
|
9/9/2009
|
8,900
|
9/9/2009
|
#742
|
600
|
|
9/16/2009
|
6,700
|
9/16/2009
|
#744
|
3,700
|
|
9/19/2009
|
6,200
|
9/18/2009
|
#745
|
5,400
|
|
9/23/2009
|
3,800
|
9/23/2009
|
#746
|
4,200
|
|
9/26/2009
|
4,200
|
9/28/2009
|
#747
|
700
|
|
9/30/2009
|
4,900
|
9/29/2009
|
#748
|
4,300
|
Balance 2/28/09 48,000
1. Why is opening balance in cash ledger account ($27,000) different than opening balance on bank statement ($33,200)?
2. Make a list of the outstanding checks as at September 30, 2009.
3. Make bank reconciliation for September 2009 in good form.
4. Make the essential journal entries in books of Frank Industries as at Septembet 30, 2009 as required by bank reconciliation.