Answer:
Journal Entries:
September 1:
Debit Cash $3,700
Credit Service Revenue $3,700
To record the provision of services for cash.
September 2:
Debit Land $5,400
Credit Long-term Note Payable $5,400
To record the purchase of land from Crimson company.
September 8:
Debit Accounts Receivable $5,000
Credit Service Revenue $5,000
To record the provision of services on account.
September 10:
Debit Supplies $1,000
Credit Accounts Payable $1,000
To record the purchase of supplies on account.
September 13:
Debit Long-term Notes Payable $3,000
Credit Cash Account $3,000
To record the payment to Crimson Company on long-term note.
September 18:
Debit Cash Account $4,000
Credit Accounts Receivable $4,000
To record the cash receipt from customers.
September 20:
Debit Rent Expense $800
Credit Cash Account $800
To record the payment of September's rent.
September 30:
Debit Utilities Expense $1,500
Credit Cash Account $1,500
To record the payment of September's utility bill.
September 30:
Debit Salaries Expense $3,000
Credit Cash Account $3,000
To record the payment of salaries for the month.
September 30:
Debit Dividend $1,000
Credit Cash Account $1,000
To record the payment of cash dividend to shareholders.
Explanation:
a) PIRATES INCORPORATED
Trial Balance
As of September 1
Accounts Debits Credits
Cash $5,500
Accounts Receivable 1,500
Supplies 6,600
Land 10,200
Accounts Payable 6,500
Notes Payable 2,000
Common Stock 8,000
Retained Earnings 7,300
Totals $23,800 $23,800
b) Pirates' Journal entries are made as business transactions occur on a daily basis. They are the first set of records in the accounting books. They identify the accounts to be debited and the accounts to be credited in the general ledger.
