TT pays their employees every other Friday. The total pay for a 2 week period is $15,485.

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TT pays their employees every other Friday. The total pay for a 2 week period is $15,485. TT also pays 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. 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.

1) Prepare the journal entries for the quarter. Do not create any new accounts. The journal entries must be in chronological order.

2) Post the entries to t-accounts.
3) Prepare an unadjusted trial balance.
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 the 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 the Cost of Goods Sold for the cost of the parts.
23-Oct	Paid employees.
26-Oct	Purchased a new computer for $2,700 in 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 the 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 a 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 the 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 ad 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 the account.
11-Dec	Paid $6,200 for insurance for a 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.