Pirates Incorporated had the following balances at the beginning of September. The following transactions occur in September.
Question:
Pirates Incorporated had the following balances at the beginning of September.
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.
Required:
1. Record each transaction.
2. Post each transaction to the appropriate T-accounts.
3. Calculate the balance of each account at September 30.
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann