Question

Problem 2-8A Complete the steps in the measurement of external transactions (L02-4,2-5, 2-6) [The following information applies to the questions displayed below.) Pirates Incorporated had the following balances at the beginning of September PIRATES INCORPORATED Trial Balance September 1 Accounta Debits Credits Cash $ 4,900 Accounts Receivable 900 Supplies 6,000 Land 9,600 Accounts Payable $ 5,900 Notes Payable 1,400 Common Stock 7,400 Retained Earnings 6,700 Totals $21,400 $21.400 The following transactions occur in September September 1 Provide services to customers for cash, $3,100. September 2 Purchase land with a long-term note for $4,800 from Crimson Company. September 4 Receive an invoice for $340 from the local newspaper for an advertisement that appeared on September 2 September 8 Provide services to customers on account for $4,400. September 10 Purchase supplies on account for $1,200. September 13 Pay $2,400 to Crimson Company for a long-term note. September 18 receive $3,400 from customers on account. September 20 Pay 5740 for September's rent. September 30 Pay September's utility bill of $1,200. September 30 Pay employees $2,400 for salaries for the month of September. September 30 Pay a cash dividend of 51,100 to shareholders.

Answer 1

Credit PIRATES INCORPORATED Journal Entries Month Particulars Sept' 1 Cash Service Revenue (To record service rendered) Debit $3,100 $3,100 $4,800 Sept' 2 Land Notes payable (To record purchase of land) $ 4,800 $ 340 Sept' 4 Advertising Expense Accounts Payable (To record ad expenses on account) $ 340 $4,400 Sept' 8 Accounts Receivable Service Revenue (To record service rendered) $4,400 $1,200 Sept' 10 Supplies Accounts Payable (To record supplies on account) $1,200

$2,400 Sept' 13 Notes Payable Cash (To record pay to crimson co,) $2,400 $3,400 Sept' 18 Cash Accounts Receivable (To record cash receipt from customers) $3,400 $ 740 Sept' 20 Rent Expense Cash (To record rent expenses) $ 740 $1,200 Sept'30 Utility Expense Cash (To record utilities expense) $1,200 $ 2,400 Sept' 30 Salaries Expense Cash (To record salaries expense) $ 2,400 $1,100 Sept' 30 Dividends Cash (To record dividends paid) $1,100

2.Ledger Beg. Sept' 1 Sept' 18 Beg. Sept' 8 Accounts Receivable $ 900 $ 3,400 Sept' 18 $ 4,400 Cash $4,900 $2,400 Sept' 13 $3,100 $ 740 Sept' 20 $3,400 $1,200 Sept'30 $ 2,400 Sept' 30 $1,100 Sept' 30 $3,560 End. End. $ 1,900 Supplies Beg. $6,000 Sept' 10 $1,200 Beg. Sept' 2 Land $ 9,600 $ 4,800 End. $ 7,200 End. $ 14,400 Beg. Beg. Accounts payable $5,900 $ 340 Sept' 4 $1,200 Sept' 10 $ 7,440 Notes Payable $ 1,400 $ 4,800 Sept' 2 $ 2,400 $ 3,800 Sept' 13 End. End. Common Stock $ 7,400 Retained Earnings $ 6,700 Beg. Beg. End. $ 7,400 End. $ 6,700

Dividends $ $1,100 Beg. Sept' 30 Beg. Service Revenue $ $ 3,100 Sept' 1 $ 4,400 Sept' 8 $ 7,500 End. $1,100 End. Rent Expense Salaries Expense Beg. $ Sept' 30 $2,400 Beg. $ Sept' 20 $ 740 End. $2,400 End. $ 740 Beg. Sept' 4 Advertising Expense $ $ 340 A A Beg. Sept'30 Utilities Expense $ $ 1,200 End. $ 340 End. $ 1,200

AAA PIRATES INCORPORATED Trial Balance September 30 Account Debit Credit Cash $ 3,560 Accounts Receivable $ 1,900 Supplies $ 7,200 Land $ 14,400 Accounts payable $ 7,440 Notes Payable $ 3,800 Common Stock $ 7,400 Retained Earnings $ 6,700 Dividends $ 1,100 Service Revenue $ 7,500 Salaries Expense $ 2,400 Rent Expense $ 740 Advertising Expense $ 340 Utilities Expense $ 1,200 TOTAL $ 32,840 $32,840 $

--------------------------------

If you have any queries/doubts,Immediately drop your messages in the comment box !!!! I will help you...
Thanks!!!