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2-Oct Sold musical instruments to a school for $28,530 cash. The instruments had been included in inventory at a cost of $18,966. 5-Oct Received payment

2-Oct

Sold musical instruments to a school for $28,530 cash. The instruments had been included in inventory at a cost of $18,966.

5-Oct

Received payment of $24,000 on account.

5-Oct

Purchased instruments on credit for $94,200.

9-Oct

Paid employees.

15-Oct

Paid $19,000 of the balance in accounts payable.

15-Oct

Paid quarterly dividends of $2,240.

19-Oct

Provided repair services for a total of $13,500. The customer paid cash. Parts that were used came out of inventory at a cost of $9,852. When TT uses parts to repair instruments, it debits Cost of Goods Sold for the cost of the parts.

23-Oct

Paid employees.

26-Oct

Purchased a new computer for $2,700 for cash.

26-Oct

Paid for advertising that will run for the next 2 months. The cost was $1,400 and TT paid in cash. Because the advertising will be used before the end of the quarter, you can just debit Advertising Expense (as opposed to a prepaid account).

27-Oct

Received a bill for heating/cooling for $1,150 and paid it on the same day.

29-Oct

Sold musical instruments to a school for $128,200 cash. The instruments had been included in inventory at a cost of $85,200.

30-Oct

Paid sales commissions.

2-Nov

Received payment of $21,900 on account.

2-Nov

Issued a note receivable to a customer. The customer could not pay its account receivable on time, so TT traded the account receivable for a note receivable. The amount was $17,500. The note will bear 4% interest rate. The entire balance, both principal and interest, will be due on August 1 of the following year.

2-Nov

Sold musical instruments for $81,400 on credit. The instruments had been included in inventory at a cost of $54,239.

6-Nov

Paid employees.

9-Nov

Paid $34,000 on account.

10-Nov

Purchased office supplies for $1,700 cash.

12-Nov

Issued stock for $18,325 cash.

13-Nov

Sold musical instruments for $42,175 cash. The instruments had been included in inventory at a cost of $28,633.

16-Nov

Received payment on account of $47,125.

20-Nov

Paid employees.

23-Nov

Purchased instruments on credit for $78,500.

24-Nov

Purchased parts on credit for $2,500.

27-Nov

Paid $14,298 of the balance in accounts payable.

27-Nov

Received payment on account of $52,000.

30-Nov

Received $24,865 from a customer to repair instruments. The repairs will not require any parts. TT will not be able to start the repairs for a few weeks.

30-Nov

Paid sales commissions.

1-Dec

Purchased a new piece of equipment, costing $31,400. TT purchased the equipment with the proceeds from a loan from the bank. The note bears an annual interest rate of 3%. Interest is payable every year. The first interest payment is due on November 28 of the following year. The balance of the note will be due in 5 years.

1-Dec

Paid $1,400 for a magazine add that will run in the current month.

1-Dec

Purchased instruments on credit for $125,695.

4-Dec

Paid employees.

8-Dec

Paid $29,250 on account.

11-Dec

Paid $6,200 insurance for coverage in the 1st quarter of the following year.

15-Dec

Sold musical instruments for $195,040 on credit. The instruments had been included in inventory at a cost of $132,522.

18-Dec

Paid employees.

21-Dec

Sold musical instruments for $352,000 on credit. The instruments had been included in inventory at a cost of $241,250.

22-Dec

Paid rent of $46,500 for the following year.

28-Dec

Received and paid the phone bill of $1,400.

28-Dec

Received payment on account of $72,360.

29-Dec

Paid $71,327 of the balance in accounts payable.

29-Dec

Provided repair services for a total of $34,763 on credit. Parts that were used came out of inventory at a cost of $19,500.

29-Dec

Declared quarterly dividends of $2,515.

29-Dec

Made a payment on the note that existed at the beginning of the year. The total payment was $28,000. $26,900 of this was to reduce the note balance. The remainder was a payment of interest.

29-Dec

Paid sales commissions.

Prepare the adjusting journal entries for the quarter. Do not create any new accounts. Be sure to read through the transactions again to see if any of them might require an adjusting journal entry.

At the end of the quarter, TT counted office supplies. It had $1492 remaining of supplies. Depreciation for the current quarter was $9200. At the end of the year TT had completed all of the repairs that they had received cash for prior to October 1. These repairs did not require any parts. They had also completed 62% of the work for the transaction on November 30.

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