please help! Meyer Corporation sells computers and provides computer repair serv
ID: 2420149 • Letter: P
Question
please help!
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
1. Prepare a trial balance dated April 30, 2015 (see page 64 in textbook). Use the “Sum” function in Excel to add up your debit and credit columns.
Explanation / Answer
Meyer Corporation Trial Balance dated April 30, 2015 Particulars Existing Balance Adjustments Final Closing Balance Debit $ Credit $ Debit $ Credit $ Debit $ Credit $ Cash 30000 101500 86500 45000 Notes Payable 15500 135000 150500 Accounts Receivable 17000 6500 7000 16500 Contributed Capital 63000 180000 243000 Inventory 8000 10000 15000 3000 Retained Earnings 45700 45700 Prepaid Advertising 2500 2500 Sales Revenue 20000 20000 Building 39000 95000 134000 Repair Service Revenue 15000 15000 Land 28000 90000 118000 Cost of Goods Sold 15000 15000 Equipment 20000 100000 120000 Advertising Expense 7000 7000 Accounts Payable 13000 8000 10000 15000 Salary Expense 15500 15500 Unearned Revenue 7300 6000 13300 159500 144500 433500 454500 469500 509500
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