The following information is available to assist you in preparing the bank reconciliation for Frank Industries for September 2009. All cash receipts are banked intact twice a week (Wednesday and Saturday) and all payments are made by check. The firm's ledger account for cash and the bank statement for September 2009 are available below. Listed on the 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 the opening balance in the cash ledger account ($27,000) different than the opening balance on the bank statement ($33,200)?
2.Prepare a list of the outstanding checks as at September 30, 2009.
3.Prepare the bank reconciliation for September 2009 in good form.
4.Prepare the necessary journal entries in the books of Frank Industries as at Septembet 30, 2009 as necessitated by the bank reconciliation.