Critical Thinking Problem 8.1 (Static) Journalizing Merchandising Transactions LO 8-1, 8-2Bill 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.DATETRANSACTIONS20X1Bill Evans started Evans Distributors with an investment of $55,000. He also invested personal businessequipment worth $7,500.2Purchased merchandise for cash, $11,500, Check 100.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, Check34101.Rivera Corporation returned mérchandise 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.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.Recorded sales on credit cards for the two-week period ended January 15, $1,200; the bank charges a 3 percent1011131515fee on all credit card sales.Paid wages, $1,875,°Check l03.16 Purchased equipment (not for resale), $1,950, Check 104.15Paid freight for delivery of equipment purchased on January 16, $150, Check 105.Purchased merchandise on account from Terri Manufacturing with a list price of $5,500, subject to a tradediscount of 40 percent, terms 1/10, n/30, Invoice 2078.Sold merchandise on account to Moloney Corp., $2,900, terms 1/10, n/30, Invoice 1002.Purchased merchandise on account from Johnson Company, $2,000, terms 1/10, n/30, Invoice 3204; freight prepaidby Johnson Company and added to invoice, $70. (Total invoice amount, $2,070.)27 Paid amount owed to Terri Manufacturing for purchase of January 18, Check 106.Purchased merchandise from Fronke Sports Fabricators with a list price of $2,800, subject to trade discounts1718202128of 25 percent and 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.Recorded cash sales for the period from January 16-31, $7,825.293031Next UUIIIIBUII CUmpany, $2,000, terms 1/10, n/30,by Johnson Company and added to invoice, $70. (Total invoice amount, $2,070.)27 Paid amount owed to Terri Manufacturing for purchase of January 18, Check 106.Purchased merchandise from Fronke Sports Fabricators with a list price of $2,800,of 25 percent and 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.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; theon all credit card sales.2829303131Required:Record the transactions in a general journal.

Merchandising Transaction: Any transaction involving inventory, such as the purchase and sale of…

is Distributors, a sporting goods distribution company, in January 20X1 and engaged in utors and its customers take advantage of all cash discounts. ONS s started Evans Distributors with an investment of $55,000. He also invested E worth $7,500. merchandise for cash, $11,500, Check 100. handise on account to Rivera Corporation, $850, terms 2/10, n/30, Invoice 1001 merchandise on account from Tsang Company, $2,000, terms 1/10, n/30, Invoice and paid freight charges related to January 4 purchase of merchandise from Tsa rporation returned mérchandise purchased on January 3; issued credit memo #10: in full from Rivera Corporation, after the return of January 10 and a: sont

is Distributors, a sporting goods distribution company, in January 20X1 and engaged in utors and its customers take advantage of all cash discounts. ONS s started Evans Distributors with an investment of $55,000. He also invested E worth $7,500. merchandise for cash, $11,500, Check 100. handise on account to Rivera Corporation, $850, terms 2/10, n/30, Invoice 1001 merchandise on account from Tsang Company, $2,000, terms 1/10, n/30, Invoice and paid freight charges related to January 4 purchase of merchandise from Tsa rporation returned mérchandise purchased on January 3; issued credit memo #10: in full from Rivera Corporation, after the return of January 10 and a: sont

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter8: Receivables

Section: Chapter Questions

Problem 8.6APR: Sales and notes receivable transactions The following were selected from among the transactions...

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Sales and notes receivable transactions The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems. Jan. 3. Loaned 18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10. Sold merchandise on account to Bradford Co., 24,000. The cost of goods sold was 14,400. I3. Sold merchandise on account to Dry Creek Co., 60,000. The cost of goods sold was 54,000. Mar. 12. Accepted a 60-day, 7% note for 24,000 from Bradford Co. on account. 14. Accepted a 60-day, 9% note for 60,000 from Dry Creek Co. on account. Apr. 3. Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) May 11. Received from Bradford Co. the amount due on the note of March 12. 13. Dry Creek Co. dishonored its note dated March 14. July 12. Received from Dry Creek Co. the amount owed on the dishonored note, plus interest for 60 days at 12% computed on the maturity value of the note. Aug. 1. Received from Trina Gelhaus the amount due on her note of April 3. Oct. 5. Sold merchandise on account, terms 2/10, n/30, to Halloran Co., 13,500. Record the sale net of the 2% discount. The cost of goods sold was 8,100. 15. Received from Halloran Co. the amount of the invoice of October 5, less 2% discount. Instructions Journalize the entries to record the transactions.
Sales and notes receivable transactions The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer Co. sells and installs home and business security systems. Jan. 3. Loaned 18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10. Sold merchandise on account to Bradford Co., 24,000. The cost of the merchandise sold was 14,400. 13. Sold merchandise on account to Dry Creek Co., 60,000. The cost of merchandise sold was 54,000. Mar. 12. Accepted a 60-day, 7% note for 24,000 from Bradford Co. on account. 14. Accepted a 60-day, 9% note for 60,000 from Dry Creek Co. on account. Apr. 3. Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) May 11. Received from Bradford Co. the amount due on the note of March 12. 13. Dry Creek Co. dishonored its note dated March 14. July 12. Received from Dry Creek Co. the amount owed on the dishonored note, plus interest for 60 days at 12% computed on the maturity value of the note. Aug. 1. Received from Trina Gelhaus the amount due on her note of April 3. Oct. 5. Sold merchandise on account to Halloran Co., 13,500. The cost of the merchandise sold was 8,100. 15. Received from Halloran Co. the amount of the invoice of October 5. Instructions Journalize the entries to record the transactions.