Wonka Candy Inc. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Wonka Candy are indicated in the working papers. Below are a series of transactions for Wonka Candy Inc. for the month of October. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 53% of the sales price. Round all numbers to whole dollars.

Oct.3 Sell merchandise on account to S. Slugworth $3,100, invoice no. 825, and to C. Bucket $5,800, invoice no. 826. 5 Purchase merchandise from P. Winkelmann $5,000 and B. Beauregard $2,200, terms n/30. 7 Receive checks from R. Teavee $4,000 and A. Gloop $2,000 after the discount period has lapsed. 8 Pay freight on merchandise purchased $535. 9 Send checks to G. Joe for $9,000 less 2% cash discount, and to M. Jopecki for $11,000 less 1% cash discount. 9 Issue credit of $1000 to C. Bucket for merchandise returned. 10 Summary daily cash sales total $5,500. 11 Sell merchandise on account to V. Salt $1,600, invoice no. 827, and to R. Teavee $2,900, invoice no. 828. 12 Pay utilities of $1,000 for October. 13 Receive payment in full from S. Slugworth and C. Bucket less cash discounts. 15 Withdrawal of $500 cash by W. Wonka for personal use. Post all entries to the subsidiary ledgers. 16 Purchase merchandise from M. Jopecki $18,000, terms 1/10, n/30; G. Joe $14,200, terms 2/10, n/30; and P. Winkelmann $1,500, terms n/30. 17 Pay $900 cash for office supplies. 18 Summary daily cash sales total $30,100. 20 Return $400 of merchandise to G. Joe and receive credit. 21 Issue $32,000 note, maturing in 90 days, to K. Turkentine in payment of balance due. 21 Receive payment in full from R. Teavee less cash discount. 22 Sell merchandise on account to S. Slugworth $12,700, invoice no. 829, and to V. Salt $11,300, invoice no. 830. Post all entries to the subsidiary ledgers. 23 Send checks to M. Jopecki and G. Joe in full payment less cash discounts. 25 Sell merchandise on account to A. Gloop $3,500, invoice no. 831, and to C. Bucket $6,100, invoice no. 832. 27 Purchase merchandise from M. Jopecki $14,500, terms 1/10, n/30; B. Beauregarde $1,200, terms n/30; and P. Winkelmann $5,400, terms n/30. Post all entries to the subsidiary ledgers. 28 Pay $500 cash for office supplies. 31 Summary daily cash sales total $26,500. 31 Pay salaries and wages of $8,650.

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, 2022, in the trial balance columns of the Worksheet. Complete the Worksheet using the following additional information. 1. Office supplies at October 31 total $900. 2. Insurance coverage expires on December 31 , 2022. The insurance was originally purchased on January 1st and has been adjusted every month of this year. 3. Annual depreciation on the equipment is $3,300. 4. Interest of $125 has accrued on the note payable. 5. Inventory on hand as of October 31 was actually $20,450 (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 4. Working Capital (a) (a) (Continued) (a) (Continued) Cash Payments Journal 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, 2022, in the trial balance columns of the Worksheet. Complete the Worksheet using the following additional information. 1. Office supplies at October 31 total $900. 2. Insurance coverage expires on December 31 , 2022. The insurance was originally purchased on January 1st and has been adjusted every month of this year. 3. Annual depreciation on the equipment is $3,300. 4. Interest of $125 has accrued on the note payable. 5. Inventory on hand as of October 31 was actually $20,450 (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 4. Working Capital (a) (a) (Continued) (a) (Continued) Cash Payments Journal