Meyer Corporation sells computers and provides computer repair services. The bal
ID: 2420646 • Letter: M
Question
Meyer Corporation sells computers and provides computer repair services. The balances in the General Ledger accounts as of 4/1/15 are as follow:
Cash
$ 30,000
Notes Payable
$ 15,500
Accounts Receivable
17,000
Contributed Capital
63,000
Inventory
8,000
Retained Earnings
45,700
Prepaid Advertising
2,500
Sales Revenue
Building
39,000
Repair Service Revenue
Land
28,000
Cost of Goods Sold (COGS)
Equipment
20,000
Advertising Expense
Accounts Payable
13,000
Salary Expense
Unearned Revenue
$7,300
The business transactions for April are shown below:
APRIL
2 Meyer invested $80,000 cash into the business and contributed $100,000 worth of equipment in exchange for stock.
4 Land and building were purchased for $185,000. Of this amount, $90,000 applied to the land, and $95,000 to the building. The corporation paid $50,000 in cash and financed the remaining balance with debt by signing a note promising to pay in four years.
7 Purchased $10,000 of computer inventory for the business on account.
10 Sold computers to customers for $20,000 receiving the entire amount in cash. The computers cost $15,000 (Hint: There are four accounts in this journal entry)
14 Received $7,000 from a customer on previously billed repair services
18 Meyers Corporation billed customers $15,000 for repair services rendered. Of this amount, $8,500 was received in cash, and the balance was billed on account.
21 Paid $8,000 of accounts payable that had become due.
24 Paid $7,000 for several television advertisements aired in April
27 Received a check from a customer for $6,000 for repair services to be rendered in May
30 Paid employees $15,500 in salaries to employees for work done during the month.
Create T- account for each account used with the beginning balance provided and determine the ending balance as of April 30.
Cash
$ 30,000
Notes Payable
$ 15,500
Accounts Receivable
17,000
Contributed Capital
63,000
Inventory
8,000
Retained Earnings
45,700
Prepaid Advertising
2,500
Sales Revenue
Building
39,000
Repair Service Revenue
Land
28,000
Cost of Goods Sold (COGS)
Equipment
20,000
Advertising Expense
Accounts Payable
13,000
Salary Expense
Unearned Revenue
$7,300
Explanation / Answer
Apr 2:
Cash(db) 80,000
Equipment(b) $100,000
Commoon stock (cr) 180,000
Apr 4:
Land (db)90,000
building (db) $95,000
Cash(cr)50,000
debt (cr) 135,000
Aper 7:
inventory(db) 10,000
Account payable (cr) 10,000
Apr 10:
Cash (db) 20,000
Revenue (cr) 20,000
Inventory(cr) 15,000
COGS(cr)15,000
Apr 14:
Accounts receivable (cr) 7000
cash (db) 7000
Apr 18:
Revenue (cr)15,000
cash (db)8500
Account receivable (db) 6500
Apr 21:
Cash (cr)8000
account payable (db) 8000
Apr 24:
Cash 7000
Expense (db) 7000
Apr 27:
unearned Revenue (cr) 6000
cash (db) 6000
Apr 30:
Cash (cr)15,000
expense(db)15,000