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 $55,750. He also invested personal business equipment worth $7,800.
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.

Jan. 1

Dr Cash$55,750

Dr Supplies$7,800

Cr Common Stock $63,550

Jan. 2

Dr Purchases$11,850

Cr Cash $11,850

Jan. 3

Dr Accounts Receivable - Rivera Corporation, $$1,010

Cr Sales Revenue $1,010

Jan. 4

Dr Purchases$2,420

Cr Accounts Payable - Tsang Company $2,420

Jan. 5

Dr Freight Expenses$220

Cr Cash $220

Jan. 10

Dr Sales Returns and Allowances$220

Cr Accounts Receivable - Rivera Corporation $220

Jan. 11

Dr Cash$790

Cr Accounts Receivable - Chu Corporation$790

Jan. 13

Dr Accounts Payable - Tsang Company$2,420

Cr Cash $2,420

Jan. 15

Dr Cash$7,620

Cr Sales Revenue $7,620

Jan. 15

Dr Accounts Receivable$1,315

Cr Bank Charges $39

Cr Sales Revenue $1,276

Jan. 16

Dr Equipment$1,915

Cr Cash $1,915

Jan. 17

Dr Equipment$230

Cr Cash $230

Jan. 18

Dr Purchases$6,300

Cr Accounts Payable - Terri Manufacturing $6,300

Jan. 20

DrAccounts Receivable - Moloney Corp.$3,380

Jan. 21

Dr Purchases$2,480

Dr Freight Expenses$150

Cr Accounts Payable - Johnson Company $2,630

Jan. 27

Dr Accounts Payable - Terri Manufacturing$6,300

Cr Cash $6,300

Jan. 29

Dr Cash$3,380

Accounts Receivable - Moloney $3,380

Jan. 30

Dr Accounts Payable - Johnson Company$2,630

Cr Cash $2,630

Jan. 31

Dr Cash$8,225

Sales Revenue $8,225

Jan. 31

Dr Accounts Receivable$2,520

Cr Bank Charges $76

Cr Sales Revenue $2,444

Explanation:

Preparation of the Journal Entries

Jan. 1

Dr Cash$55,750

Dr Supplies$7,800

Cr Common Stock $63,550

($55,750+$7,800)

(To record the amount invested into the business along with supplies)

Jan. 2

Dr Purchases$11,850

Cr Cash $11,850

(To record the purchase of merchandise inventory by cash)

Jan. 3

Dr Accounts Receivable - Rivera Corporation, $$1,010

Cr Sales Revenue $1,010

(To record the sale of merchandise on account)

Jan. 4

Dr Purchases$2,420

Cr Accounts Payable - Tsang Company $2,420

(To record the purchase of merchandise inventory on account)

Jan. 5

Dr Freight Expenses$220

Cr Cash $220

(To record the payment of freight charges)

Jan. 10

Dr Sales Returns and Allowances$220

Cr Accounts Receivable - Rivera Corporation $220

(To record the return of merchandise that was sold to Chu Corporation)

Jan. 11

Dr Cash$790

Cr Accounts Receivable - Chu Corporation ($1,010 - $220) $790

(To record the collection of amount from credit sales)

Jan. 13

Dr Accounts Payable - Tsang Company$2,420

Cr Cash $2,420

(To record the payment made to credit purchases)

Jan. 15

Dr Cash$7,620

Cr Sales Revenue $7,620

(To record the cash sales)

Jan. 15

Dr Accounts Receivable$1,315

Cr Bank Charges ($1,315*3/100)$39

Cr Sales Revenue $1,276

($1,315-$39)

(To record the sales made on credit card)

Jan. 16

Dr Equipment$1,915

Cr Cash $1,915

(To record the purchase of equipment on account)

Jan. 17

Dr Equipment$230

Cr Cash $230

(To record the payment of freight charges)

Jan. 18

Dr Purchases$6,300

Cr Accounts Payable - Terri Manufacturing $6,300

(To record the purchase of merchanise inventory on account)

Jan. 20

DrAccounts Receivable - Moloney Corp.$3,380

Cr Sales Revenue $3,380

(To record the sales made on account)

Jan. 21

Dr Purchases$2,480

Dr Freight Expenses$150

Cr Accounts Payable - Johnson Company $2,630

($2,480+$150)

(To record the purchase of inventory on account)

Jan. 27

Dr Accounts Payable - Terri Manufacturing$6,300

Cr Cash $6,300

(To record the payment made to credit purchases)

Jan. 29

Dr Cash$3,380

Accounts Receivable - Moloney $3,380

(To record the amount received from credit sales)

Jan. 30

Dr Accounts Payable - Johnson Company$2,630

($2,480+$150)

Cr Cash $2,630

(To record the payment made to credit purchases)

Jan. 31

Dr Cash$8,225

Sales Revenue $8,225

(To record the cash sales)

Jan. 31

Dr Accounts Receivable$2,520

Cr Bank Charges ($2,520*3/100)$76

Cr Sales Revenue $2,444

($2,520-$76)

(To record the sales made on credit card)

fnfjfjjfjf nh ngngnfnfnfnnfn