Question

Journal entry for the transactions

Required information Problem 2-8A Complete the steps in the measurement of external transactions (LO2-4,2-5, 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 Accounts Debits Credits Cash $ 4,700 Accounts Receivable 700 Supplies 5,800 Land 9,400 Accounts Payable $ 5,700 Notes Payable 1,200 Common Stock 7,200 Retained Earnings 6,500 Totals $20,600 $20,600 The following transactions occur in September September 1 Provide services to customers for cash, $2,900. September 2 Purchase land with a long-term note for $4,600 from Crimson Company. September 4 Receive an invoice for $320 from the local newspaper for an advertisement that appeared on September 2. September 8 Provide services to customers on account for $4,200. September 10 Purchase supplies on account for $1,000. September 13 Pay $2,200 to Crimson Company for a long-term note. September 18 Receive $3,200 from customers on account. September 20 Pay $728 for September's rent. September 30 Pay September's utility bill of $1,100. September 30 Pay employees $2,200 for salaries for the month of September. September 30 Pay a cash dividend of $1,000 to shareholders. Problem 2-8A Part 1

this was my effort but i know its not right

Answer 1

Solution:

Journal entry:

Date	Account title and explanation	Debit	Credit
Sept 1	cash	$2,900
	Service revenue		$2,900
	(Being services provided for cash )
Sept 2	Land	$4,600
	Notes payable		$4,600
	(Being land purchased with note payable)
Sept 4	Advertisement	$320
	Accounts payable		$320
	(being Advertising exps)
Sept 8	Accounts receivable	$4,200
	Service revenue		$4,200
	(Service provided on credit)
Sept 10	Supplies	$1,000
	Accounts payable		$1,000
	(Being supplies purchased on credit)
Sept 13	Notes payable	$2,200
	Cash		$2,200
	(Notes payable paid)
Sept 18	Cash	$3,200
	Accounts receivable		$3,200
	(Being cash recd form accounst receivable)
Sept 20	Rent	$720
	Cash		$720
	(Rent paid for September)
Sept 30	Utilities	$1,100
	Cash		$1,100
	(Utility bill for september paid)
Sept 30	Salaries	$2,200
	cash		$2,200
	(Being salaries paid for September)
Sept 30	Dividend	$1,000
	Cash		$1,000
	(Being cash dividend paid)

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