Melton Plastics Company was incorporated on September 16, 1979. By September 30, 1979, the firm was ready to begin operations. The trial balance at that date was as follows:

The following data relate only to the mànufacturing operations of the firm during October:
(1) Materials purchased on account, \(\$ 161,600\).
(2) Wages and salaries earned during the month, \(\$ 148,000\).
(3) Raw materials requisitioned and put into process during the month, \(\$ 168,800\).
(4) Equipment was acquired during the month at a cost of \(\$ 112,000\). A check for \(\$ 40,000\) was issued, and an equipment contract payable in eight equal monthly installments was signed for the remainder.
(5) Additional payments by check:

(6) Invoices received but unpaid at October 31, 1979:

(7) Depreciation on equipment for the month, \(\$ 1,200\).
(8) One month's insurance expiration is recorded.
(9) The cost of parts finished during October was \(\$ 281,750\).
a Open T-accounts and enter the amounts from the opening trial balance.
b Record the transactions during the month in the T-accounts, opening additional accounts as needed.
c Prepare an adjusted trial balance at October 31, 1979.

Transcribed Image Text:

Cash Raw Materials Inventory Factory Equipment Accounts Payable. Capital Stock $387,200 19,200 136,000 $ 22,400 520,000 $542,400 $542,400