lets try this again...

NOVEMBER

Annie Meyer borrowed $75,000 from a local organization that finances the start-up of small businesses. Meyer signed a long-term Note Payable with an 8% annual interest rate due in 5 years, and Meyer deposited this money in the company checking account. Meyer Company is required to repay the note and interest upon maturity.

Meyer paid rent for November, December, and January on her small office. The rent for all three months was $3,000 ($1,000 each month).

Meyer paid insurance for November and December of $400 ($200 each month).

Meyer purchased a van for deliveries. The cost of the van was $30,000, its useful life is 5 years, and it will have a salvage value of $1,500 at the end of the 5 years.

Meyer purchased a computer for $1,200 (5-year useful life, no salvage value) and office furniture for $2,000 (5-year useful life, $400 salvage value).

Meyer purchased the following inventory from Cards Etc. on credit terms 2/10, n/30:

Inventory Item Cost per item Quantity Purchased

Thank You $0.30 5000

Birthday $0.80 3000

Sold inventory on account to Tidbits:

Inventory Item Sales Price per item Quantity Sold

Thank You $3.00 2000

Birthday $3.50 500

Received from Tidbits a merchandise return for 30 of the Thank You cards.

Sold inventory on account to a novelty shop that just opened called Thingsville:

Inventory Item Sales Price per item Quantity Sold

Thank You $3.00 400

Birthday $3.50 400

Purchased inventory on credit terms of 2/10, n/30 from Greetings!:

Inventory Item Cost per item Quantity Purchased

Thank You $0.40 2000

Sold inventory for cash to a local company:

Inventory Item Sales Price per item Quantity Sold

Thank You $3.00 3000

Purchased supplies for cash of $100.

Paid utilities of $350.

Prepare month-end adjusting entries for rent, insurance, interest expense, and depreciation for the month of November. Also, $30 worth of supplies was on hand at the end of the month.

Required:

1. Prepare Meyer Companys Income Statement and Statement of Owners Equity for November. Prepare the Balance Sheet as of November 30.