George K. Connor is a company that sells goods using a perpetual inventory system. During its first month of operations, February 2018, the following transactions occurred.

Feb 1 Purchased inventory on account for $20,000, terms of 2/10, n/30

Feb 1 Received a deposit of $10,000 from a customer for products to be delivered later

Feb 1 Returned damaged inventory from the February 1 purchase worth $3,500

Feb 5 Sold products for cash of $13,000, the cost of goods was $6,000

Feb 10 Paid the balance owing to the supplier of inventory from Febuary 1

Feb 16 Received an advertising bill for $3,000, which will be paid next month

Feb 21 Sold products on account for $31,000, the cost of goods was $10,000

Feb 22 Paid wages and benefits with $6,000 cash; this amount includes sales salaries of $4,000 and office salaries of $2,000

Feb 25 Sold products on account for $31,000, the cost of goods was $10,000

Feb 26 A customer agreed to keep a defective product for a 30% allowance, the customer originally paid $1,000 on account for the product

Feb 27 A customer returned an incorrect product for cash; this product had a sales price of $500 and a cost of $300; the item was returned to the sales floor for resale

Feb 28 Incurred maintenance expense at the head office of $2,000 on account

The company uses the following chart of accounts to implement its accounting system.

Account Description	Account #
Assets
Cash	101
Accounts Receivable	105
Merchandise Inventory	115
Computers	120
Liabilities
Accounts Payable	200
Unearned Revenue	215
Owners Equity
Connor, Capital	300
Connor, withdrawals	310

Account Description	Account #
Revenue
Service Revenue	400
Sales Returns and Allowances	455
Expenses
Costs of Goods Sold	500
Advertising Expenses	505
Maintenance Expense	520
Salaries Expense	545

1. Prepare the journal entries for the period

2. Post the entries to the general ledger

3. Prepare a trial balance

4. Prepare a multiple-step income statement for the period

5. Prepare a statement of owners equity for the period

6. Prepare a classified balance sheet for the period

7. Calculate the gross profit margin on product sales

8. calculate the current ratio at the end of the period