Question

William Evans began Evans Distributors, a sporting goods distribution company, in January 2016, and engaged in the transactions below. Assume Evans Distributors and its customers take advantage of all cash discounts.
DATE TRANSACTIONS
2016
Jan. 1 William Evans started Evans Distributors with an investment of $49,000. He also invested personal business supplies worth $1,000.
2 Purchased merchandise for cash, $10,500, Check 100.
3 Sold merchandise on account to Chu Corporation, $750, terms 2/10, n/30, Invoice 1001.
4 Purchased merchandise on account from Whitson Company, $1,800, terms 1/10, n/30, Invoice 1125.
5 Received and paid freight charges related to January 4 purchase of merchandise from Whitson Company, $100, Check 101.
10 Chu Corporation returned merchandise purchased on January 2; issued credit memo #101 for $100.
11 Received payment in full from Chu Corporation.
13 Paid amount due to Whitson Company for purchase of January 4, Check 102.
15 Recorded cash sales for the two-week period ended Jan. 15 of $5,750.
15 Recorded sales on credit cards for the two-week period ended Jan. 15, $1,200; the bank charges a 3% fee on all credit card sales.
15 Paid wages, $1,400, Check 103.
16 Purchased equipment (not for resale), $1,750, Check 104.
17 Paid freight for delivery of equipment purchased on January 16, $250, Check 105.
18 Purchased merchandise on account from Terri Manufacturing for $4,500, subject to trade discount of 40%, terms 1/10, n/30, Invoice 2078.
20 Sold merchandise on account to Moloney Corp., $2,500, terms 1/10, n/30, Invoice 1002.
Jan. 21 Purchased merchandise on account from Schmidt Company, $3,000, terms 1/10, n/30, Invoice 3204; freight prepaid by Schmidt Company and added to invoice, $70. (Total invoice amount, $3,070).
27 Paid amount owed to Terri Manufacturing for purchase of January 18, Check 106.
29 Received amount due from Moloney Corp. for the sale of January 20.
30 Paid amount due to Schmidt Company for purchase of January 21, Check 107.
31 Recorded cash sales for the period from January 16–31, $6,200.
31 Recorded sales on the credit cards for the period from January 16–31, $2,200; the bank charges a 3% fee on all credit card sales.

INSTRUCTIONS
Record the transactions in a general journal. Number the first journal as page 1. Provide brief explanations after each journal entry.



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  • CreatedAugust 08, 2014
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