The business transactions for April are shown below: APRIL 2 Meyer invested $80,
ID: 2420456 • Letter: T
Question
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.
Please make journal entries for all.
Explanation / Answer
Journal Entries
April 2
Cash debit $ 80,000
Equipment debit $ 100,000
Stock credit $ 100,000
Capital credit $ 80,000
April 4
Land debit $ 90,000
Building debit $ 95,000
Cash debit $ 50,000
4 Year Promissory Note credit $ 135,000
April 7
Computer debit $ 10,000
Account Payable credit $ 10,000
April 10
Cash debit $ 20,000
Accumumalted depreciation debit $15,000
Computer credit $15,000
Profit on sale credit $ 20,000
(Assuming the computers are fully depreciated)
April 14
Cash debit $ 7,000
Account Receivable credit $ 7,000
April 18
Cash debit $ 8,500
Account Receivable debit $ 6,500
Service Revenue credit $ 15,000
April 21
Account Payable debit $ 8,000
Cash credit $ 8,000
April 24
Advertisement Expense debit $ 7,000
Cash credit $ 7,000
April 27
Cash debit $ 6,000
Account Receivable credit $ 6,000
April 30
Salary debit $ 15,500
Cash credit $ 15,500
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