Melody's Music (MM)  is a calendar-year firm that sells and repairs a variety of musical instruments. They sell the instruments to schools. They also sell various accessories and music. TT prepares financial statements once per quarter.

TT pays their employees every other Friday for their work that week and the preceding week. The company is only open 5 days a week and the employees are paid if the store is closed for a holiday. The total pay for a 2 week period is $15,485. The first payday in the fourth quarter was on October 9. This pay period covered the work done from September 28 through October 9. Paydays in the fourth quarter are: October 9, October 23, November 6, November 20, December 4, December 18,

In addition to salary, TT pay their sales associates a 6% commission on all instrument sales. This includes only the sale of instruments, it does not include service revenue. They pay this on the last day of every month, for that month’s sales.

The chart of accounts and the beginning trial balance is included in the spreadsheet for this project. The spreadsheet also includes a template for your solutions.

The prepaid rent on the beginning trial balance was paid on December 20, 2019 to cover occupancy in 2020. The prepaid insurance was for coverage from October 1, 2020 through December 31, 2020.

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.

During the fourth quarter of 2020 TT completed the transactions included on the following pages.

Required for Part 1:

1) Prepare the journal entries for the quarter. Do not create any new accounts. The journal entries must be in chronological order. (No adjusting entries need to be made for part 1.)

2) Post the entries to t-accounts.

3) Prepare an unadjusted trial balance.

Required for Part 2:

1) 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.

2) Post the entries to t-accounts. (Use the same t-accounts that you used for the Part 1 assignment.)

3) Prepare an adjusted trial balance.

4) Prepare a statement of net income, statement of stockholders’ equity, and a balance sheet for the 4^th quarter.

5) Prepare closing entries.

6) Post the closing entries to the t-accounts.

7) Prepare a post-closing trial balance.

Melody's Music (MM)  is a calendar-year firm that sells and repairs a variety of musical instruments. They sell the instruments to schools. They also sell various accessories and music. TT prepares financial statements once per quarter.

TT pays their employees every other Friday for their work that week and the preceding week. The company is only open 5 days a week and the employees are paid if the store is closed for a holiday. The total pay for a 2 week period is $15,485. The first payday in the fourth quarter was on October 9. This pay period covered the work done from September 28 through October 9. Paydays in the fourth quarter are: October 9, October 23, November 6, November 20, December 4, December 18,

In addition to salary, TT pay their sales associates a 6% commission on all instrument sales. This includes only the sale of instruments, it does not include service revenue. They pay this on the last day of every month, for that month’s sales.

The chart of accounts and the beginning trial balance is included in the spreadsheet for this project. The spreadsheet also includes a template for your solutions.

The prepaid rent on the beginning trial balance was paid on December 20, 2019 to cover occupancy in 2020. The prepaid insurance was for coverage from October 1, 2020 through December 31, 2020.

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.

During the fourth quarter of 2020 TT completed the transactions included on the following pages.

Required for Part 1:

1) Prepare the journal entries for the quarter. Do not create any new accounts. The journal entries must be in chronological order. (No adjusting entries need to be made for part 1.)

2) Post the entries to t-accounts.

3) Prepare an unadjusted trial balance.

Required for Part 2:

1) 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.

2) Post the entries to t-accounts. (Use the same t-accounts that you used for the Part 1 assignment.)

3) Prepare an adjusted trial balance.

4) Prepare a statement of net income, statement of stockholders’ equity, and a balance sheet for the 4^th quarter.

5) Prepare closing entries.

6) Post the closing entries to the t-accounts.

7) Prepare a post-closing trial balance.

Answer rating: 100% (QA)

Part 1 1 Journal Entries DateDescriptionDebitCredit Sep 28Wages Expense15485 Sep 28Payroll Taxes Expense1548 Sep 28Insurance Expense1200 Sep 28Rent Expense1000 Sep 28Supplies Expense500 Sep 28Utilitie... View the full answer