Critical Thinking Problem 8.1 (Static) Journalizing Merchandising Transactions LO 8-1, 8-2 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. 4 5 10 11 15 DATE TRANSACTIONS 20x1 Jan. 1 Bill Evans started Evans Distributors with an investment of $55,000. He also invested personal business equipment worth $7,500. 2 Purchased merchandise for cash, $11,500, Check 100. 3 Sold merchandise on account to Rivera Corporation, $850, terms 2/10, n/30, Invoice 1001. Purchased merchandise on account from Tsang Company, $2,000, terms 1/10, n/30, Invoice 1125. Received and paid freight charges related to January 4 purchase of merchandise from Tsang Company, $150, Check 101. Rivera Corporation returned merchandise purchased on January 3; issued credit memo #101 for $150. 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. Recorded cash sales for the two-week period ended January 15 of $7,250. 15 Recorded sales on credit cards for the two-week period ended January 15, $1,200; the bank charges a 3 percent fee on all credit card sales. 15 Paid wages, $1,875, Check 103. 16 Purchased equipment (not for resale), $1,950, Check 104. 17 Paid freight for delivery of equipment purchased on January 16, $150, Check 105. 18 Purchased merchandise on account from Terri Manufacturing with a list price of $5,500, subject to a trade discount of 40 percent, terms 1/10, n/30, Invoice 2078. 20 Sold merchandise account to Moloney Corp., $2,900, terms 1/10, n/30, Invoice 1002. 21 Purchased merchandise on account from Johnson Company, $2,000, terms 1/10, n/30, Invoice 3204; freight prepaid by Johnson Company and to invoice, $70. amount, $2,070.) 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 $2,800, subject to trade discounts of 25 percent 10 percent, terms n/30, Invoice 1888. Received amount due from Moloney Corp. for the sale of January 20. Paid amount due to Johnson Company for purchase of January 21, Check 107. 31 Recorded cash sales for the period from January 16-31, $7,825. Recorded sales on the credit cards for the period from January 16-31, $2,200; the bank charges a 3 percent fee on all credit card sales. 27 29 30 31 Required: Record the transactions in a general journal. View transaction list Journal entry worksheet Bill Evans started Evans Distributors with an investment of $55,000. He also invested personal business equipment worth $7,500. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 20X1 Record entry Clear entry View general journal