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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

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 weighted average method to determine value for the inventory.

The opening balances for the month of September are as follows:

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

Accumulated Depreciation

-40,000

Common Shares

62,000

Retained Earnings

31,850

Total Assets

$137,550

Total Liabilities & Shareholders' Equity

$137,550

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

Transactions for the month of October:

Oct 1

Bought inventory from Outdoor Muzi on account, invoice #5455; 1000 units at $30 each. Terms of the purchase were 4/10, net 30. Update the inventory table after each purchase.

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.

Your staff accountant goes through the mail and opens the bank statement for the month of October provided by Fanshawe Local Bank. It is shown below.

Fanshawe Local Bank

Prepared for Marco Polo

Date

Information

Withdrawal

Deposit

Balance

Opening Balance

12,600.00

Oct 2

Deposit

14,200.00

26,800.00

Oct 5

Chq#143

1,200.00

25,600.00

Oct 8

Deposit

66,500.00

92,100.00

Oct 8

Deposit

5,000.00

97,100.00

Oct 11

Chq#8240

2,400.00

94,700.00

Oct 31

Service Char

60.00

94,640.00

Prepare Financial statements for year ended October 31,2020

.

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