Instructions: (a) Record the October transactions in a Sales Journal, a single-column Purchases Journal, a Cash Receipts Journal, a Cash Payments Journal, and a two-column General Journal. (b) Post the journals to the General Ledger. (c) Prepare a Trial Balance at October 31, 2023, in the trial balance columns of the Worksheet. Complete the Worksheet using the following additional information. 1. Office supplies at October 31 total $850. 2. Insurance coverage expires on December 31, 2023. The insurance was originally purchased on January 1st and has been adjusted every month of this year. 3. Annual depreciation on the equipment is $19,000. Round to the nearest dollar. 4. Interest of $508 has accrued on the note payable. 5. Make the adjusting entry for Rent. (See Oct. 12th Transaction) 6. Inventory on hand as of October 31 was actually $100,550 (d) Prepare a multiple-step Income Statement and an Owner's Equity Statement for October and a classified Balance Sheet at the end of October. (e) Prepare and post adjusting and closing entries. (f) Prepare a Post-Closing Trial Balance and determine whether the subsidiary ledgers agree with the control accounts in the General Ledger. (g) Calculate the following ratios. Include the written formula in words in addition to your calculations and your final answers: 1. Inventory Turnover 2. Days in Inventory for the month of October 3. Gross Profit Rate 1. Use the working papers provided to complete this project. 2. Complete this project by hand, in pencil. 3. Make sure all work is your own. This is not a group project, you are being individually assessed. Sharing of answers or "working together" will result in an F for all individuals involved. 4. This company uses a perpetual system of inventory. payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Nights Watch Security Inc. are indicated in the working papers. Below are a series of transactions for Nights Watch Security Inc. for the month of October. Credit sales terms are 1/10, n/25. The cost of all merchandise sold was 28% of the sales price. Round all numbers to whole dollars. Oct. 3 Purchase merchandise from L. Varys 1/10,n/30 for $51,000 and T. Greyjoy for $22,500, terms 2/10. n/30. 5 Receive checks from S. Stark $16,400 and J. Snow $16,700 after the discount period has lapsed. 6 Receive $500 worth of office supplies on account. 7 Sell merchandise on account to D. Targaryen $12,000, invoice no. 125 , and to T. Lannister $15,200, invoice no. 126. 8 Freight on merchandise purchased from T. Greyjoy for $240 paid for with cash (FOB Shipping point) 9 Send checks to T. Greyjoy and D. Seaworth for balances due (terms for both were 2/10, n30), and to S. Tarly for balance due (terms were n/30 ). 9 Summary daily cash sales total $35,650. 10 Withdrawal of $15,500 cash by B. Tarth for personal use. 11 Sell merchandise on account to J. Snow $16,600, invoice no. 127 , and to S. Stark $12,900, invoice no. 128. 12 Pay rent in cash of $18,000 for October, November and December. (Hint: this is a prepaid account) 13 Receive payment in full from T. Lannister less cash discount and J. Mormont who paid after the cash discount period was up. 15 Return $5,000 of merchandise to T. Greyjoy and receive credit. Post all entries to the subsidiary ledgers. 16 Purchase merchandise from L. Varys $18,000, terms 1/10,n/30; D. Seaworth $14,200, terms 2/10, n/30; and S. Tarly $23,500, terms 1/10,n/30. 17 Pay $2,400 cash for office supplies. 18 Summary daily cash sales total $40,155. 20 Issue credit of $5,200 to D. Targaryen for merchandise returned 21 Issue $61,000 note, maturing in 90 days, to vendor S. Clegane in payment of the account balance due. 21 Receive payment in full from S. Stark less cash discount. 22 Sell merchandise on account to D. Targaryen $22,700, invoice no. 129 , and to J. Snow $34,200, invoice no. 130 . Post all entries to the subsidiary ledgers. 23 Send checks to S. Tarly and D. Seaworth in full payment less cash discounts. 25 Sell merchandise on account to J. Mormont $50,250, invoice no. 131, and to T. Lannister $36,100, invoice no. 132. 27 Purchase merchandise from L. Varys $14,500, terms 1/10,n/30; T. Greyjoy $12,400, terms 2/10, n/30; and S. Tarly $15,400, terms n/30. Post all entries to the subsidiary ledgers. 28 Pay $500 for the office supplies purchased on October 6th. (continued) Page 1 of 3 31 Summary daily cash sales total $26,500. 31 Pay salaries and wages of $12,750. (a) (Continued) (a) (Continued) (a) (Continued) Cash Payments Journal \begin{tabular}{|c|c|c|c|c|c|c|} \hline Date & \begin{tabular}{l} Account \\ Debited \\ \end{tabular} & Ref. & \begin{tabular}{c} Other \\ Accounts \\ Dr. \\ \end{tabular} & \begin{tabular}{c} Accounts \\ Payable \\ Dr. \\ \end{tabular} & \begin{tabular}{c} Merchandise \\ Inventory \\ Cr. \\ \end{tabular} & \begin{tabular}{c} Cash \\ Cr. \\ \end{tabular} \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular}