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comprehensive problem 2 located on pages 341-342 the end of chapter 6 accounting 28th edition Carl s warren it is about palisade creek co

Chapter Accounting for Merchandising Business 341 3. Prepare the closing entries for Simkins Company as of June 30, 2019 4. What would the net income have been if the perpetual inventory system had been used Comprehensive Problem 2 $70655 Palisade Creek Co is a merchandising business that uses the perpetual entory system The account balances for Pallade Groek Co as of May 1, 2017 Cunless otherwise indicated) are as follows 110 Cash $ 83,600 Accounts Receivable 233.000 115 Merchandisinventory 652,400 117 Prepaid insurance 118 Store Supplies 11.400 123 Store opment 563.500 12 Accumulated Depreciation-Store Equipment 56700 210 Accounts Payable 6,600 211 Customer Refunds Payable 50.000 212 Salaries Puyatle 310 Lynn Tolley, Capital, June 1, 2016 665.300 111 Lynn Tolley, Drawing 135.000 410 5.000.000 510 Cost of Merchandise Sold 2,823,000 520 Sales Salaries Expense 664,800 521 Advertising Experte 281.000 522 Depreciation Experte 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12.500 530 Office Series Expense 382,100 531 Rent Expense 83,700 532 Insurance Expense 539 Miscellaneous Administrative Expense 7.800 During May, the last month of the fiscal year, the following transactions were completed: May 1. Paid rent for May, $5,000. 3. Purchased merchandise on account from Martin Co., terms 2/10, 1/30, FOR shipping point, 336,000. 1. Paid freight on purchase of May 3, $600. 6. Sold merchandise on account to Korman Co., terms 2/10, 1/30, TOB shipping point, $68,500. The cost of the merchandise sold was $41,000. 7. Received $22,300 cash from Halstad Co, on account. 10. Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. 13. Paid for merchandise purchased on May 3. 15. Paid advertising expense for last half of May, $11,000 16. Received cash from sale of May 6. 19. Purchased merchandise for cash, $18,700. 19. Paid $33.450 to Buttons Co. on account. 20. Paid Korman Co, a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co, kept the merchandise. (Continued) MyCiCo, /10, 0, FOR | | | |--TH 4 - 21. Purmandise ORL 24. damchandise purchased on May 21, receiving creme 1. Enter the balancescach of the the appropriate balance column of a four-column contre ce in the column and place a check mark Hefunded cash sales match. The defective mechandise was not Sold mechanic to Turner C, terms 2/10, 0, POS shipping 342 Chat. Ang for Men handing Business From the follow me ons on year of the point $110.000. The cherchandishi wa $70,000 21. Rd2 cashmer Co. an account destination, from the seller for 35,000 returned by the customer 2. Paid sales salaries of $5,000 and office salaries of $29,000 29. Purchase ore supplies for cash, $2,400 point, $78,750. The cost of the merchandise sold w $47.000 30. Received cash from sale of May 20 plus freight paid on May 21 31. Paid for purchase of May 21, less return of May 24 Instructions 20 of the journal 2. Post the journal to the general ledger, extending the most end balances to the appropriate update or post to the accounts receivable and accounts payable subsidiary lodgen 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31 5585.200 Insurance expired during the year 12.000 Store supplies on hand on May 31 4,000 d Depreciation for the current year 14.000 Accrued salaries on May 31 Sales salaries $7,000 Office salaries 6,600 13,000 The adjustment for customer refunds and allowance is 560,000 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spread sheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owner's equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. Insert the new balance in the owner's capital account. 10. Prepare a post-closing trial balance. Chapter Accounting for Merchandising Business 341 3. Prepare the closing entries for Simkins Company as of June 30, 2019 4. What would the net income have been if the perpetual inventory system had been used Comprehensive Problem 2 $70655 Palisade Creek Co is a merchandising business that uses the perpetual entory system The account balances for Pallade Groek Co as of May 1, 2017 Cunless otherwise indicated) are as follows 110 Cash $ 83,600 Accounts Receivable 233.000 115 Merchandisinventory 652,400 117 Prepaid insurance 118 Store Supplies 11.400 123 Store opment 563.500 12 Accumulated Depreciation-Store Equipment 56700 210 Accounts Payable 6,600 211 Customer Refunds Payable 50.000 212 Salaries Puyatle 310 Lynn Tolley, Capital, June 1, 2016 665.300 111 Lynn Tolley, Drawing 135.000 410 5.000.000 510 Cost of Merchandise Sold 2,823,000 520 Sales Salaries Expense 664,800 521 Advertising Experte 281.000 522 Depreciation Experte 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12.500 530 Office Series Expense 382,100 531 Rent Expense 83,700 532 Insurance Expense 539 Miscellaneous Administrative Expense 7.800 During May, the last month of the fiscal year, the following transactions were completed: May 1. Paid rent for May, $5,000. 3. Purchased merchandise on account from Martin Co., terms 2/10, 1/30, FOR shipping point, 336,000. 1. Paid freight on purchase of May 3, $600. 6. Sold merchandise on account to Korman Co., terms 2/10, 1/30, TOB shipping point, $68,500. The cost of the merchandise sold was $41,000. 7. Received $22,300 cash from Halstad Co, on account. 10. Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. 13. Paid for merchandise purchased on May 3. 15. Paid advertising expense for last half of May, $11,000 16. Received cash from sale of May 6. 19. Purchased merchandise for cash, $18,700. 19. Paid $33.450 to Buttons Co. on account. 20. Paid Korman Co, a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co, kept the merchandise. (Continued) MyCiCo, /10, 0, FOR | | | |--TH 4 - 21. Purmandise ORL 24. damchandise purchased on May 21, receiving creme 1. Enter the balancescach of the the appropriate balance column of a four-column contre ce in the column and place a check mark Hefunded cash sales match. The defective mechandise was not Sold mechanic to Turner C, terms 2/10, 0, POS shipping 342 Chat. Ang for Men handing Business From the follow me ons on year of the point $110.000. The cherchandishi wa $70,000 21. Rd2 cashmer Co. an account destination, from the seller for 35,000 returned by the customer 2. Paid sales salaries of $5,000 and office salaries of $29,000 29. Purchase ore supplies for cash, $2,400 point, $78,750. The cost of the merchandise sold w $47.000 30. Received cash from sale of May 20 plus freight paid on May 21 31. Paid for purchase of May 21, less return of May 24 Instructions 20 of the journal 2. Post the journal to the general ledger, extending the most end balances to the appropriate update or post to the accounts receivable and accounts payable subsidiary lodgen 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31 5585.200 Insurance expired during the year 12.000 Store supplies on hand on May 31 4,000 d Depreciation for the current year 14.000 Accrued salaries on May 31 Sales salaries $7,000 Office salaries 6,600 13,000 The adjustment for customer refunds and allowance is 560,000 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spread sheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owner's equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. Insert the new balance in the owner's capital account. 10. Prepare a post-closing trial balance

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