Answer:
Pirates Incorporated
1. Journal Entries;
Sept. 1
Debit Cash $4,700
Credit Service Revenue $4,700
To record provision of services for cash.
Sept. 2
Debit Land $6,400
Credit Notes Payable (Crimson Company) $6,400
To record the purchase of land.
Sept. 4
Debit Advertising Expense $500
Credit Advertising Payable $500
To record advertising expense.
Sept. 8
Debit Accounts Receivable $6,000
Credit Service Revenue $6,000
To record the provision of services on account.
Sept. 10
Debit Supplies $1,100
Credit Accounts Payable $1,100
To record the purchase of supplies on account.
Sept. 13
Debit Notes Payable $4,000
Credit Cash account $4,000
To record payment to Crimson Company.
Sept. 18
Debit Cash Account $5,000
Credit Accounts Receivable $5,000
To record the receipt of cash from customers.
Sept. 20
Debit Rent Expense $900
Credit Cash Account $900
To record the payment of September's rent.
Sept. 30
Debit Utilities Expense $2,000
Credit Cash Account $2,000
To record the payment of September's utilities.
Sept. 30
Debit Salaries Expense $4,000
Credit Cash Account $4,000
To record the payment of September's salaries.
Sept. 30
Debit Dividends $1,100
Credit Cash Account $1,100
To record the payment of dividends to shareholders.
2. T-Accounts:
Cash Account
Date Description Debit Credit
Sept. 1 Balance $6,500
Sept. 1 Service Revenue 4,700
Sept. 13 Notes Payable $4,000
Sept. 18 Accounts Receivable 4,000
Sept. 20 Rent 900
Sept. 30 Utilities 2,000
Sept. 30 Salaries 4,000
Sept. 30 Dividends 1,100
Sept. 30 Balance c/d 3,200
Accounts Receivable
Date Description Debit Credit
Sept. 1 Balance $3,500
Sept. 8 Service Revenue 6,000
Sept. 18 Cash $5,000
Sept. 30 Balance c/d 4,500
Supplies
Date Description Debit Credit
Sept. 1 Balance $7,600
Sept. 10 Accounts Payable 1,100
Sept. 30 Balance c/d $8,700
Land
Date Description Debit Credit
Sept. 1 Balance $11,200
Sept. 2 Notes Payable 6,400
Sept. 30 Balance c/d $17,600
Accounts Payable
Date Description Debit Credit
Sept. 1 Balance $7,500
Sept. 10 Supplies 1,100
Sept. 30 Balance c/d $8,600
Notes Payable
Date Description Debit Credit
Sept. 1 Balance $3,000
Sept. 2 Land 6,400
Sept. 12 Cash $4,000
Sept. 30 Balance c/d $5,400
Common Stock
Date Description Debit Credit
Sept. 1 Balance $9,000
Retained Earnings
Date Description Debit Credit
Sept. 1 Balance $8,300
Service Revenue
Date Description Debit Credit
Sept. 1 Cash $4,700
Sept. 8 Accounts Receivable 6,000
Sept. 30 Balance c/d $10,700
Advertising Expense
Date Description Debit Credit
Sept. 4 Advertising payable $500
Advertising Payable
Date Description Debit Credit
Sept. 4 Advertising Expense $500
Rent Expense
Date Description Debit Credit
Sept. 20 Cash $900
Utilities Expense
Date Description Debit Credit
Sept. 30 Cash $2,000
Salaries Expense
Date Description Debit Credit
Sept. 30 Cash $4,000
Dividend
Date Description Debit Credit
Sept. 30 Cash $1,100
3. Pirates Incorporated
Trial Balance as of September 30:
Accounts Debits Credits
Cash $ 3,200
Accounts Receivable 4,500
Supplies 8,700
Land 17,600
Accounts Payable $ 8,600
Notes Payable 5,400
Common Stock 9,000
Retained Earnings 8,300
Service Revenue 10,700
Advertising Payable 500
Advertising expense 500
Rent expense 900
Utilities expense 2,000
Salaries expense 4,000
Dividends 1,100
Totals $ 42,500 $ 42,500
Explanation:
a) Data and Calculations:
Pirates Incorporated
Trial Balance as of September 1
Accounts Debits Credits
Cash $ 6,500
Accounts Receivable 2,500
Supplies 7,600
Land 11,200
Accounts Payable $ 7,500
Notes Payable 3,000
Common Stock 9,000
Retained Earnings 8,300
Totals $ 27,800 $ 27,800
