Critical Thinking Problem $8\mathrm{.}1($Algo$)$ Journalizing Merchandising Transactions LO $8-1,8-2$

Bill Evans began Evans Distributors, a sporting goods distribution company, in January $201$ and engaged in the transactions below.

Assume Evans Distributors and its customers take advantage of all cash discounts.

DATE

TRANSACTIONS

January $1,20$X$1$ Bill Evans started Evans Distributors with an investment of $$55,900.$ He also invested personal business equipment worth $$7,860.$

January $2,20$X$1$ Purchased merchandise for cash, $$11,860,$ check $100.$

January $3,20$X$1$ Sold merchandise on account to Rivera Corporation, $$985,$ terms $\frac{2}{10},$ n$/30,$ Invoice $1001.$

January $4,20$X$1$ Purchased merchandise on account from Tsang Company, $$2,360,$ terms $\frac{1}{10},$ n$/30,$ Invoice $1125.$

January $5,20$X$1$ Received and paid freight charges related to January $4$ purchase of merchandise from Tsang Company, $$240,$ Check $101.$

January $10,20$X$1$ Rivera Corporation returned merchandise purchased on January $3$; issued credit memo #$101$ for $$240.$

January $11,20$X$1$ Received payment in full from Rivera Corporation, after the return of January $10.$ and after the discount.

January $13,20$X$1$ Paid amount due to Tsang Company for purchase of January $4,$ check $102.$

January $15,20$X$1$ Recorded cash sales for the two$-$week period ended January $15$ of $$7,610.$

January $15,20$X$1$ Recorded sales on credit cards for the two$-$week period ended January $15,$ $$1,300$; the bank charges a $3$ percent fee on all credit card sales.

January $15,20$X$1$ Paid wages, $$2,145,$ Check $103.$

January $16,20$X$1$ Purchased equipment $($not for resale$),$ $$1,920,$ check $104.$

January $17,20$X$1$ Paid freight for delivery of equipment purchased on January $16,$ $$195,$ check $105.($Note: Freight charges for $.$ purchase of equipment should be debited to the Equipment account.$)$

January $18,20$X$1$ Purchased merchandise on account from Terri Manufacturing with a list price of $$5,950,$ subject to a trade $-$ discount of $40$ percent, terms $\frac{1}{10},\frac{n}{30},$ Invoice $2078.$

January $20,20$X$1$ Sold merchandise on account to Moloney Corporation, $$3,170,$ terms $\frac{1}{10},\frac{n}{30},$ Invoice $1002.$

January $21,20$X$1$ Purchased merchandise on account from Johnson Company, $$2,270,$ terms $\frac{1}{10},\frac{n}{30},$ Invoice $3204$ ; freight prepaid by Johnson Company and added to invoice, $$115.($Total invoice amount, $$2,385\mathrm{.}00.)$

January $27,20$X$1$ Paid amount owed to Terri Manufacturing for purchase of January $18,$ Check $106.$

January $28,20$X$1$ Purchased merchandise from Osaki Sports Fabricators with a list price of $$3,070,$ subject to trade discounts of $25$ percent and $10$ percent, terms $\frac{n}{30},$ Invoice $1888.$

January $29,20$X$1$ Received amount due from Moloney Corporation for the sale of January $20.$

January $30,20$X$1$ Paid amount due to Johnson Company for purchase of January $21,$ Check $107.$

January $31,20$X$1$ Recorded cash sales for the period from January $16-31,$ $$8,050.$

January $31,20$X$1$ Recorded sales on the credit cards for the period from January $16-31,$ $$2,380$; the bank charges a $3$ percent fee on all credit card sales.

Required:

Record the transactions in a general journal.

Note: Round your answers to $2$ decimal places.

Journal entry worksheet

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