Please help sos! Meyer Corporation sells computers and provides computer repair
ID: 2419940 • Letter: P
Question
Please help sos!
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.
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. Post each transaction from Question 1 to the appropriate T account 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
T-accounts for the transactions
building a/c
To balance b/d 39000
To puchases 95000 by balance c/d 134000
134000 134000
Land a/c
To balance b/d 28000
To purchases 90000 by balance c/d 118000
118000 118000
Accounts payable a/c
To cash a/c 8000 By balance b/d 13000
To balance c/d 5000
13000 13000
Notes payable a/c
By balance b/d 15500
To bance c/d 150500 By purchase of land &building 135000
150500 150500
Repair services revenue a/c
To balance b/d by billed customers 15000
To cash a/c 8500
To bank 6000
Capital a/c
by balance b/d 63000
To balance c/d 143000 by cash a/c 80000
143000 143000
Cash a/c
To capital a/c 80000 by land &building 50000
To sale from computer 20000 by account payable 8000
To repair services 7000 by television advertisements 7000
To repair sevices revenue 8500 by salary 15500
by computer 10000
by balance c/d 25000
115500 115500
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