1. Shutterbee sells a number of custom photo products. Customers place custom orders on the company's website and pay half up front and the other half when the order ships. During the month, Shutterbee received and shipped $5,000 worth of orders. Shutterbee's cost to manufacture the custom products totaled $3,500.
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During the month, Shutterbee purchased $600 worth of ink and toner because it was on sale for a deep discount.
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3. Shutterbee pays $3,000 in employee salaries for the month. $500 relates to salaries that were accrued last month. Shutterbee also accrues $250 of salaries for time that employees worked this month but have not yet been paid.
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4. Shutterbee sold some old equipment at the scrap yard. The equipment originally cost $1,500. Shutterbee had already recognized $1,200 of depreciation on the equipment. Shutterbee sold the equipment for $100.
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5 Shutterbee's furnance went out and it agreed to provide $1,500 of custom photo products in the future, in exchange for a new furnance from Town and Farm HVAC. Town and Farm HVAC normally sells the for $2,000.
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6.Shutterbee delivered the photo products to Town and Country HVAC.
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