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:

(6) Received invoices tor tiie follow iiig (nol paid as of October 31)

(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 the.se 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 3 1 .

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Cash Raw Materials Inventory. Factory Equipment Accounts Payable Capital Stock .. $580.800 28.800 204,000 $813,600 $ 33,600 780,000 $813,600