Question

Pirates Incorporated had the following balances at the beginning of September. PIRATES INCORPORATED Trial Balance September 1 Accounts Debits Credits Cash $ 6,100 Accounts Receivable 2,100 Supplies 7,200 Land 10,800 Accounts Payable $ 7,100 Notes Payable 2,600 Common Stock 8,600 Retained Earnings 7,900 Totals $ 26,200 $ 26,200 The following transactions occur in September. September 1 Provide services to customers for cash, $4,300. September 2 Purchase land with a long-term note for $6,000 from Crimson Company. September 4 Receive an invoice for $460 from the local newspaper for an advertisement that appeared on September 2. September 8 Provide services to customers on account for $5,600. September 10 Purchase supplies on account for $1,000. September 13 Pay $3,600 to Crimson Company for a long-term note. September 18 Receive $4,600 from customers on account. September 20 Pay $860 for September's rent. September 30 Pay September's utility bill of $1,800. September 30 Pay employees $3,600 for salaries for the month of September. September 30 Pay a cash dividend of $1,000 to shareholders. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account on September 30. (Hint: Be sure to include the balance at the beginning of September in each T-account.)

Answer 1

CASH
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
01/09	TO OPENING BALANCE	6100	13/09	BY NOTES PAYABLE	3600
01/09	TO SALES	4300	20/09	BY RENT	860
18/09	TO ACCOUNT RECEIVABLE	4600	30/09	BY UTILITY BILL	1800
			30/09	BY SALARY	3600
			30/09	BY DIVIDEND	1000
			30/09	BY CLOSING BALANCE	4140
		15000			15000

ACCOUNT RECEIVABLE
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
01/09	TO OPENING BALANCE	2100	18/09	BY CASH	4600
08/09	TO SALES	5600	30/09	BY CLOSING BALANCE	3100
		7700			7700

SUPPLIES
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
01/09	TO OPENING BALANCE	7200	30/9	BY CLOSING BALANCE	8200
10/09	TO ACCOUNT PAYABLE	1000
		8200			8200

LAND
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
01/09	TO OPENING BALANCE	10800	30/09	BY CLOSING BALANCE	16800
02/09	TO NOTE PAYABLE	6000
		16800			16800

ACCOUNT PAYABLE
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
30/09	TO CLOSING BALANCE	8560	01/09	BY OPENING BALANCE	7100
			04/09	BY ADVERTISEMENT	460
			10/09	BY SUPPLIES	1000
		8560			8560

NOTES PAYABLE
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
13/09	TO CASH	3600	01/09	BY OPENING BALANCE	2600
30/09	TO CLOSING BALANCE	5000	02/09	BY LAND	6000
		8600			8600

COMMON STOCK
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
30/09	TO CLOSING BALANCE	8600	01/09	BY OPENING BALANCE	8600
		8600			8600

RETAINED EARNINGS
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
30/09	TO DIVIDEND	1000	01/09	BY OPENING BALANCE	7900
30/09	TO CLOSING BALANCE	6900
		7900			7900

SALES
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
30/09	TO CLOSING BALANCE	9900	01/09	BY CASH	4300
			08/09	BY ACCOUNT RECEIVABLE	5600
		9900			9900

ADVERTISEMENT
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
04/09	TO ACCOUNT PAYABLE	460	30/09	BY CLOSING BALANCE	460
		460			460

DIVIDEND
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
30/09	TO CASH	1000	30/09	BY RETAINED EARNINGS	1000
		1000			1000

SALARY
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
30/09	TO CASH	3600	30/09	BY CLOSING BALANCE	3600
		3600			3600

RENT
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
04/09	TO CASH	860	30/09	BY CLOSING BALANCE	860
		860			860

UTILITY BILL
DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
04/09	TO CASH	1800	30/09	BY CLOSING BALANCE	1800
		1800			1800