This problem is a continuation of Problem 27, Melton Plastics Company. In addition to the manufacturing activities described in that problem. the following transactions relating to selling and administrative activities occurred during October 1979.

(10) Sales, on account, \(\$ 340,600\).

(11) Collections from customers, \(\$ 330,000\).

(12) Salaries earned during the month: Sales, \(\$ 30,800\); office, \(\$ 31,200\).

(13) Payments by check:

(15) The inventory of finished goods on October 31,1979 , is \(\$ 59,000\).
a Employing the T-accounts of Problem 27 and additional accounts as needed, record the selling and administrative activities for the month in the T-accounts.
b Prepare a combined statement of income and retained earnings for the month.
c Enter closing entries in the T-accounts using an Income Summary account.
d Prepare a balance sheet as of October 31, 1979.

Transcribed Image Text:

Sales Salaries $27,630 Office Salaries 27,550 Advertising During October. 7,200 Rent of Office and Office Equipment for October 2,200 Office Supplies 1,600 Miscellaneous Office Costs 1,400 Miscellaneous Selling Costs 2,800 Total. $70,380