Need advice on free transform

Hi

I am new ti AI, and have a question. I am using the latest CC version

I have placed 2 PSD files, that I want to transform.

I try to do it like this:

I select the object with the selection tool (V)

Select the free transform tool (E)

Chose the free distort option in the popout menu

I drag the corners of the box, but when I let go, the imagie is not distorted.

The same work on a rectangle i.e.

Is it because it does not work on images, or is my workflow not correct.

Thanks.

Ulf