1 Employees are paid bi-monthly on the 1st day of the month for work performed during the last half of the last month (because of the New Year's holiday, this month they are paid on the 2nd), and on the 16th for work done during first half of the present month. Total wages paid on this date were $20,400.
2 Cottonwood signed and paid for an annual advertising agreement with PRCA for banner ads on the PRCA website. Cottonwood's advertisements may be posted to the website starting in March 2007 and run until 28th February, 2008. The contract cost is $7,200 plus any art and setup charges, which can be billed as they occur.
3 Cottonwood's office manager picked up office supplies from Office Max on her way into work. She checked orders against Cottonwood's purchase order and stocked the supplies in the supply cabinet. The Office Max invoice totaled $362 and payment terms are net 15th of the month.
4 Cottonwood received a check for $12,620 from one of their customers as payment for a last order.
5 Cottonwood received a shipment of event merchandise from Rodeo Outfitters Company. This merchandise was ordered on December 20th and was delivered by Viking Freight. Rodeo Outfitters paid Viking for the shipping charge of $882. Cottonwood is to pay Rodeo Outfitters $92,000 based on terms of 2/10 net 30.
6 Cottonwood received their new product catalogs ordered from a local print shop. The print shop billed Cottonwood $6,000 for 5,000 catalogs with payment terms of net 10. Cottonwood considers catalogs as advertising and expenses the catalogs at the end of the month based on find how many catalogs are sent out during the month.