Pirates Incorporated had the following balances at the beginning of September.Pirates Incorporated had the following balances at the beginning of September.PIRATES INCORPORATED Trial Balance - September 1Accounts Debits CreditsCash $ 6,500Accounts Receivable 2,500Supplies 7,600Land 11,200Accounts Payable $7,500Notes Payable 3,000Common Stock 9,000Retained Earnings 8,300Total $27,800 $27,800The 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 balanceat the beginning of September in each T-account.)4. Prepare a trial balance as of September 30.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Pirates Incorporated had the following balances at the beginning of September.Pirates Incorporated had the following balances at the beginning of September.
PIRATES INCORPORATED
Accounts Debits Credits
Cash $ 6,500
Accounts Receivable 2,500
Supplies 7,600
Land 11,200
Accounts Payable $7,500
Notes Payable 3,000
Common Stock 9,000
Retained Earnings 8,300
Total $27,800 $27,800
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.
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.
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