2012

MAR 3 PURCHASED A PIANO (INVENTORY) FOR 70,000 , SIGNING A SIX MONTH , 8% NOTE PAYABLE

MAY 31 BORROWED 70,000 ON A 5% NOTE PAYABLE THAT CALLS FOR ANNUAL INSTALLMENT PAYMENTS OF 14,000 PRINCIPAL PLUS INTEREST. RECORD THE SHORT TERM PAYABLE IN A SEPARATE ACCOUNT THAT THE LONG TERM PAYABLE.

SEP 3 PAID THE SIX MONTH, 8% NOTE PAYABLE AT MATURITY

DEC 31 ACCRUED WARRANTY EXPENSE, WHICH IS ESTIMATED AT 2.5% OF SALES OF $193,000

DEC 31 ACCRUED INTEREST ON THE OUTSTADING NOTE PAYABLE

2013

MAY 31 PAID THE FIRST INSTALLMENT AND THE INTEREST FOR ONE YEAR ON THE OUTSTANDING NOTE PAYABLE

** STATE JOURNAL ENTRIES FOR EVERY TRANSACTION.