Pirates Incorporated had the following balances at the beginning of September. PIRATES INCORPORATED
Trial Balance
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
The following transactions occur in September:
September 1 Provide services to customers for cash, $3,700.
September 2 Purchase land with a long-term note for $5,400 from Crimson Company.
September 4 Receive an invoice for $400 from the local newspaper for an advertisement that appeared on September 2.
September 8 Provide services to customers on account for $5,000.
September 10 Purchase supplies on account for $1,000.
September 13 Pay $3,000 to Crimson Company for a long-term note.
September 18 Receive $4,000 from customers on account.
September 20 Pay $800 for September's rent.
September 30 Pay September's utility bill of $1,500.
September 30 Pay employees $3,000 for salaries for the month of September.
September 30 Pay a cash dividend of $1,000 to shareholders.
Record each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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.

answer; private store;

answer; schedule c;