Problem: Write journal entries (in good form using debits and credits) for the following transactions and facts applying to January 2008: i. On January 2nd , 2008 Campus T-Shirt collected $5,000 in cash from a large department store for a purchase made by that department store back in December of 2007. ii. Campus T-Shirt purchased $8,000 in additional supplies on January 7th , 2008. The supplies will be used over the next few months. Campus paid $4,000 in cash and promised to pay the remainder in 30 days. iii.  On January 13 th , Campus T-Shirt sold 10 shirts for $10 each to an individual who paid cash. The cost of the shirts to Campus T-Shirt was $5.00 per shirt. iv.  On January 15 th , Campus T-Shirt paid its employees the wages payable from the beginning of the year and $15,000 in additional wages for work performed during January 2008.

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Problem Details

Write journal entries (in good form using debits and credits) for the following transactions and facts applying to January 2008:

i. On January 2nd , 2008 Campus T-Shirt collected $5,000 in cash from a large department store for a purchase made by that department store back in December of 2007.

ii. Campus T-Shirt purchased $8,000 in additional supplies on January 7th , 2008. The supplies will be used over the next few months. Campus paid $4,000 in cash and promised to pay the remainder in 30 days.

iii.  On January 13 th , Campus T-Shirt sold 10 shirts for $10 each to an individual who paid cash. The cost of the shirts to Campus T-Shirt was $5.00 per shirt.

iv.  On January 15 th , Campus T-Shirt paid its employees the wages payable from the beginning of the year and $15,000 in additional wages for work performed during January 2008.

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