The business transactions for Meyer Company for April are shown below:
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.
Prepare all journal entries.
Journal entries pertain to the recording of transactions which are financially related in a business. This is considered as one of the first steps in accounting. This has two sides, the debit (left) , and the credit (right), both of which should always be equal in amount.
Answer and Explanation: 1
|Cost of goods sold||15,000|
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fromChapter 3 / Lesson 10
Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples.