The business transactions for Meyer Company for April are shown below: APRIL 2 Meyer invested...
Question:
The business transactions for Meyer Company 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.
Required:
Prepare all journal entries.
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
| Date | Account titles | Debit | Credit |
|---|---|---|---|
| Apr. 2 | Cash | 80,000 | |
| Equipment | 100,000 | ||
| Common stock | 180,000 | ||
| 4 | Land | 90,000 | |
| Building | 95,000 | ||
| Cash | 50,000 | ||
| Notes payable | 135,000 | ||
| 7 | Inventory | 10,000 | |
| Accounts payable | 10,000 | ||
| 10 | Cash | 20,000 | |
| Sales | 20,000 | ||
| Cost of goods sold | 15,000 | ||
| Inventory | 15,000 | ||
| 14 | Cash | 7,000 | |
| Accounts receivables | 7,000 | ||
| 18 | Cash | 8,500 | |
| Accounts receivables | 6,500 | ||
| Service revenue | 15,000 | ||
| 21 | Accounts payable | 8,000 | |
| Cash | 8,000 | ||
| 24 | Advertising expense | 7,000 | |
| Cash | 7,000 | ||
| 27 | Cash | 6,000 | |
| Unearned revenue | 6,000 | ||
| 30 | Salaries expense | 15,500 | |
| Cash | 15,500 |
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Journal Entries and Trial Balance in Accounting
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Chapter 3 / Lesson 10
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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.
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