Marco Polo sells outdoor sporting equipment. You have been working for the company since its inception a few years ago and have been promoted to be their accounting manager. They use the perpetual inventory system and use the weigted average method to determine value for the inventory.

The inventory figure includes 500 units purchased at $25.5 each.

Oct 2	Sold goods to Outback Kian, 700 units at $100 each with invoice #4741. The invoice terms were 5/10, net 30. Update the inventory table after each sale.
Oct 5	Paid $1,200 with cheque #143 to Outdoor Muzi for an amount owing from last month.
Oct 5	Bought inventory from Climb Foe with cheque #144, 600 units at $25 per unit.
Oct 7	Returned 200 defective units to Climb Foe and received cash.
Oct 8	Received $900 from Firewood Bill for a sale on account last month.
Oct 10	Outback Kian paid invoice #4741 on time and took advantage of the early payment discount.
Oct 31	Prepared the payroll for October. Gross pay is $8,400, CPP is $416, EI is $158 and income tax is $1,680. The employer matches CPP contributions and pays 1.4 times the EI deduction. Use the general journal to record this. The cheque will be prepared later.

General Ledger Accounts
Account:	Cash				GL No:	101
Date	Description	PR	DR	CR	Balance (DR or CR)
	Opening Balance				26,800.00	DR
Oct 5	Paid Chq#14	GJ3		1,200.00	25,600.00	DR
Oct 5	Paid invento	GJ3		15,000.00	10,600.00	CR
Oct 7	Return of in	GJ3	5,000.00		15,600.00	CR
Oct 8	Received pa	GJ3	900.00		16,500.00	CR
Oct 10	Received pa	GJ3	66,500.00		83,000.00	DR

Marco Polo
Balance Sheet
As at September 30, 2020
Assets		Liabilities
Cash	$26,800	Accounts Payable	$18,700
Accounts Receivable	$18,000	Bank Loan	$25,000
Merchandise Inventory	$12,750	Total Liabilities	$43,700
Equipment	$120,000	Shareholders' Equity	$0
Accumulated Depreciation	-$40,000	Common Shares	$62,000
		Retained Earnings	$31,850
Total Assets	$137,550	Total Liabilities & Shareholders' Equity	$137,550

Assume that $6,250 of the bank loan will be paid off in the next year.

Prepare Financial Statements for October 31, 2020.