Pirates Incorporated had the following balances at the beginning of September. The following transactions occur in September.September

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

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The following transactions occur in September.September 1 Provide services to customers for cash, $4,700.September 2 Purchase land with a long-term note for $6,400 from Crimson Company.September 4 Receive an invoice for $500 from the local newspaper for an advertisement that appeared on September 2.September 8 Provide services to customers on account for $6,000.September 10 Purchase supplies on account for $1,100.September 13 Pay $4,000 to Crimson Company for a long-term note.September 18 Receive $5,000 from customers on account.September 20 Pay $900 for September?s rent.September 30 Pay September?s utility bill of $2,000.September 30 Pay employees $4,000 for salaries for the month of September.September 30 Pay a cash dividend of $1,100 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. (Hint: Be sure to include the balance at the beginning of September in each T-account.)4. Prepare a trial balance as of September 30.

Dividend
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...
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Financial Accounting

ISBN: 978-1259914898

5th edition

Authors: David Spiceland, Wayne M. Thomas, Don Herrmann

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