Preparing T-account entries, income statement, and balance sheet for a manufacturing firm. Wilmington Chemical Company commenced operations on October 1. The trial balance at that date was as follows:

The following data relate only to the manufacturing operations of the firm during October:
(1) Purchased materials on account for \(\$ 242,400\).
(2) Received labor services from factory employees totaling \(\$ 222,000\) and paid \(\$ 168,630\) of this amount; see (5) below.
(3) Requisitioned and put into process during the month raw materials costing \(\$ 253,200\).
(4) Acquired equipment during the month at a cost of \(\$ 168,000\). The firm made a down payment of \(\$ 60,000\) and signed an equipment contract payable in eight equal monthly installments for the remainder.
(5) Paid the following in cash:

(7) Computed depreciation on equipment for the month of \(\$ 1,800\).
(8) Recorded one month's insurance expiration.
(9) The cost of parts finished during October was \(\$ 422,625\).
In addition to these manufacturing activities, the following transactions relating to selling and administrative activities occurred during October:
(10) Made sales, on account, totaling \(\$ 510,900\).
(11) Collected cash from customers from sales on account, \(\$ 495,000\).

(12) Selling and office employees earned salaries during the month as follows: sales, \(\$ 46,200\); office \(\$ 46,800\).
(13) Paid the following in cash:

(14) The inventory of office supplies on October 31 was \(\$ 1,200\).
(15) The inventory of finished goods on October 31 was \(\$ 88,500\).

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. Enter closing entries in the T-accounts, using an Income Summary account.

d. Prepare a combined statement of income and retained earnings for the month.

e. Prepare a balance sheet as of October 31.

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Cash Raw Materials Inventory Factory Equipment Accounts Payable Common Stock.. $580,800 28,800 204,000 $813,600 $ 33,600 780,000 $813,600