Question

Pirates Incorporated had the following balances at the beginning of September.
  

PIRATES INCORPORATED Trial Balance September 1
Accounts	Debits			Credits
Cash	$	5,400
Accounts Receivable		1,400
Supplies		6,500
Land		10,100
Accounts Payable				$	6,400
Notes Payable					1,900
Common Stock					7,900
Retained Earnings					7,200
Totals	$	23,400		$	23,400

  
The following transactions occur in September.

September		1		Provide services to customers for cash, $3,600.
September		2		Purchase land with a long-term note for $5,300 from Crimson Company.
September		4		Receive an invoice for $390 from the local newspaper for an advertisement that appeared on September 2.
September		8		Provide services to customers on account for $4,900.
September		10		Purchase supplies on account for $1,200.
September		13		Pay $2,900 to Crimson Company for a long-term note.
September		18		Receive $3,900 from customers on account.
September		20		Pay $790 for September's rent.
September		30		Pay September's utility bill of $1,450.
September		30		Pay employees $2,900 for salaries for the month of September.
September		30		Pay a cash dividend of $1,200 to shareholders.

Provide services to customers for cash, $3,600

	Date Account Title Debit Credit September 01

Purchase land with a long-term note for $5,300 from Crimson Company.

	Date Account Title Debit Credit September 02

Receive an invoice for $390 from the local newspaper for an advertisement that appeared on September 2.

	Date Account Title Debit Credit September 04

Provide services to customers on account for $4,900.

	Date Account Title Debit Credit September 08

Purchase supplies on account for $1,200.

	Date Account Title Debit Credit September 10

Pay $2,900 to Crimson Company for a long-term note.

	Date Account Title Debit Credit September 13

Receive $3,900 from customers on account.

	Date Account Title Debit Credit September 18

Pay $790 for September's rent.

	Date Account Title Debit Credit September 20

Pay September's utility bill of $1,450.

	Date Account Title Debit Credit September 30

Answer 1

Date	Account title and Explanation	Debit	Credit
Sept 1	Cash	$3,600
	Service revenue		$3,600
	[To record service revenue]
Sept 2	Land	$5,300
	Notes payable		$5,300
	[To record purchase of land in exchange of long-term notes]
Sept 4	Advertising expense	$390
	Accounts payable		$390
	[To record advertising expense]
Sept 8	Accounts receivable	$4,900
	Service revenue		$4,900
	[To record service revenue]
Setp 10	Supplies	$1,200
	Accounts payable		$1,200
	[To record purchase of supplies on account]
Sept 13	Notes payable	$2,900
	Cash		$2,900
	[To record cash paid for notes]
Sept 18	Cash	$3,900
	Accounts receivable		$3,900
	[To record collections from customers]
Sept 20	Rent expense	$790
	Cash		$790
	[To record payment of rent]
Sept 30	Utilities expense	$1,450
	Cash		$1,450
	[To record payment of utilities]
Sept 30	Salaries expense	$2,900
	Cash		$2,900
	[To record payment of salaries ]
Sept 30	Cash dividends	$1,200
	Cash		$1,200
	[To record payment of cash dividends]