In: Accounting
Bill Evans began Evans Distributors, a sporting goods distribution company, in January 20X1 and engaged in the transactions below. Assume Evans Distributors and its customers take advantage of all cash discounts.
DATE | TRANSACTIONS | ||
20X1 | |||
Jan. | 1 | Bill Evans started Evans Distributors with an investment of $56,050. He also invested personal business equipment worth $7,920. | |
2 | Purchased merchandise for cash, $11,850, Check 100. | ||
3 | Sold merchandise on account to Rivera Corporation, $1,010, terms 2/10, n/30, Invoice 1001. | ||
4 | Purchased merchandise on account from Tsang Company, $2,420, terms 1/10, n/30, Invoice 1125. | ||
5 | Received and paid freight charges related to January 4 purchase of merchandise from Tsang Company, $220, Check 101. | ||
10 | Rivera Corporation returned merchandise purchased on January 3; issued credit memo #101 for $220. | ||
11 | Received payment in full from Rivera Corporation, after the return of January 10 and after the discount. | ||
13 | Paid amount due to Tsang Company for purchase of January 4, Check 102. | ||
15 | Recorded cash sales for the two-week period ended January 15 of $7,620. | ||
15 | Recorded sales on credit cards for the two-week period ended January 15, $1,315; the bank charges a 3 percent fee on all credit card sales. | ||
15 | Paid wages, $2,025, Check 103. | ||
16 | Purchased equipment (not for resale), $1,915, Check 104. | ||
17 | Paid freight for delivery of equipment purchased on January 16, $230, Check 105. | ||
18 | Purchased merchandise on account from Terri Manufacturing with a list price of $6,300, subject to a trade discount of 40 percent, terms 1/10, n/30, Invoice 2078. | ||
20 | Sold merchandise on account to Moloney Corp., $3,380, terms 1/10, n/30, Invoice 1002. | ||
21 | Purchased merchandise on account from Johnson Company, $2,480, terms 1/10, n/30, Invoice 3204; freight prepaid by Johnson Company and added to invoice, $150. (Total invoice amount, $2,630.00.) | ||
27 | Paid amount owed to Terri Manufacturing for purchase of January 18, Check 106. | ||
28 | Purchased merchandise from Fronke Sports Fabricators with a list price of $3,280, subject to trade discounts of 25 percent and 10 percent, terms n/30, Invoice 1888. | ||
29 | Received amount due from Moloney Corp. for the sale of January 20. | ||
30 | Paid amount due to Johnson Company for purchase of January 21, Check 107. | ||
31 | Recorded cash sales for the period from January 16–31, $8,225. | ||
31 | Recorded sales on the credit cards for the period from January 16–31, $2,520; the bank charges a 3 percent fee on all credit card sales. |
Required:
Record the transactions in a general journal. (Round your
answers to 2 decimal places.)