The business transactions for Meyer Company for April are shown below: APRIL 2 Meyer invested...


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:

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

Learn more about this topic:

Journal Entries and Trial Balance in Accounting


Chapter 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.

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