Answer:
Pirates Incorporated
1. Journal Entries;
Sept. 1
Cash Debit $4,700
Service Revenue Credit $4,700
To record cash payment for services rendered.
Sept. 2
Land Debit $6,400
Notes Payable Credit (Crimson Company) $6,400
To record acquisition of land property.
Sept. 4
Advertising Expense Debit $500
Advertising Payable Credit $500
To record incurred advertising costs.
Sept. 8
Accounts Receivable Debit $6,000
Service Revenue Credit $6,000
To record services provided on credit.
Sept. 10
Supplies Debit $1,100
Accounts Payable Credit $1,100
To record purchase of supplies on credit.
Sept. 13
Notes Payable Debit $4,000
Cash account Credit $4,000
To record repayment to Crimson Company.
Sept. 18
Cash Account Debit $5,000
Accounts Receivable Credit $5,000
To record cash received from clients.
Sept. 20
Rent Expense Debit $900
Cash Account Credit $900
To record rent payment for September.
Sept. 30
Utilities Expense Debit $2,000
Cash Account Credit $2,000
To record utility payment for September.
Sept. 30
Salaries Expense Debit $4,000
Cash Account Credit $4,000
To record salary payment for September.
Sept. 30
Dividends Debit $1,100
Cash Account Credit $1,100
To record dividend distribution 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
