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Palisade Creek Co is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2018, are as follows: Assume all accounts have normal balances 110 Cash 112 115 Accounts receivable Inventory Estimated returns inventory Prepaid insurance $83.600 233,900 624 400 28,000 116 117 16.800 118 Store supplies 11 400 123 124 Store equipment Accumulated depreciation-store equipment 569,500 56.700 Instructions 56,700 96,600 Accumulated depreciation-store equipment Accounts payable Salaries payable Customers refunds payable 124 210 211 212 310 311 312 313 Common stock 50,000 100,000 585,300 135,000 Retained earnings Dividends income summary 410 510 Sales Cost of goods sold Sales salaries expense Advertising expense 5,069,000 2,823,000 664,800 281.000 520 521 664.800 281,000 520 521 522 523 529 530 531 532 539 Sales salaries expense Advertising expense Depreciation expense Store supplies expense Miscellaneous selling expense Omice salaries expense Rent expense Insurance expense Miscellaneous administrative expense 12,600 382 100 83,700 7,800 During May, the last month of the fiscal year, the following transactions were completed the f r ontarfinns n nanen of the journal Refer to the Chart Scrunt feat wine facute During May, the last month of the fiscal year, the following transactions were completed Record the following transactions on page 20 of the journal. Refer to the Chart of Accounts for exact wording of accounties May 1 3 4 6 Paid rent for May, 55000 Purchased merchandise on account from Martin Coterms 2/10, 1/30, FOB shipping point, 536,000 Paid freight on purchase of May 3, 5600 Sold merchandise on account to Korman Coterms 2/10, 1/30, FOB shipping point $68,500. The cost of the goods sold was 541000 Received $22.300 cash from Halstad Co. on account Sold merchandise for cash, $54.000 The cost of the goods sold was $32,000 Paid for merchandise purchased on May 3 7 10 13 10 13 15 16 19 19 20 Sold merchandise for cash, 554,000. The cost of the goods sold was $32,000. Paid for merchandise purchased on May 3 Paid advertising expense for last half of May, $11,000 Received cash from sale of May 6. Purchased merchandise for cash, $18,700 Paid $33.450 to Buttons Co. on account Paid Korman Co a cash refund of $13.230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8.000 Record the following transactions on page 21 of the journal. Refer to the Chart of Accounts for exact wording of account titles 28 29 30 Paid sales salaries of $56,000 and office salaries of $29,000 Purchased store supplies for cash, $2,400 Sold merchandise on account to Turner Coterms 2/10, 1/30, FOB shipping point, 578,750. The cost of the goods sold was 547,000 Received cash from sale of May 20 plus freight paid on May 21 Paid for purchase of May 21, less return of May 24 30 31 7. Prepare an adjusted trial balance Accounts with zero balances can be left blank Palisade Creek Co. ADJUSTED TRIAL BALANCE May 31, 2018 ACCOUNT TITLE a Cash Accounts Receivable Inventory Estimated Returns Inventory 5 Prepaid Insurance Journal 1. B. Journalize the transactions for May, starting on Page 20 of the journal." 2. Add the appropriate posting reference to the journal 6. A Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal 6. B. Add the appropriate posting reference to the journal *Refer to the Chart of Accounts for exact wording of accountries Scroll down for pages 21 through 22 of the journal PAGE 20 bost the May transactions from the plete the following steps in Part hcluded in your grade in 3. Prepare an unadjusted trial balance Accounts with zero balances can be left blank count Enter Mayf in the date Palisade Creek Co. UNADJUSTED TRIAL BALANCE May 31, 2018 Is after all posting is completed in Mary jedgers ACCOUNT TITLE 1 Cash Arcounts Receivable Inventory Palisade Creek Co is a merchandising business that uses the perpetual inventory system During May, the last month of the fiscal year, transactions were completed In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. If you completed the end of period worksheet in Part 1, use the adjusted trial balance figures to prepare an income statement a retained earnings statement, and a balance sheet. If you didn't complete the end-of period work shoot in Part 1, use the ledger (The Excel spreadsheet to prepare an income statement, a retained earnings statement, and a balance sheet 9. A Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the Chart of Accounts for exact wording of accounts 9. B. Post the closing entries to the lodger of four column accounts. Add the appropriate posting reference to the journal insert the new balance in the retained earnings account 10. Prepare a poor closing trial balance Accounts with zero balances can be left blank Required: 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement a retained earnings statement, and a balance sheet. If you didn't complete the end-of-period worksheet in Part 1, use the ledger (the Excel spreadsheet) 10 prepare an income statement, a retained earnings statement, and a balance sheet 9. A Prepare the closing entnes Record the closing entries on Page 23 of the journal. Refer to the Chart of Accounts for exact wording of account toes 9. B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal. Insert the new balance in the retained earnings account 10. Prepare a post-closing trial balance Accounts with zero balances can be left blank *For guidance in completing the financial statements, be sure to read the instructions above each statement carefully CHART OF ACCOUNTS Palisade Creek Co. General Ledger ASSETS REVENUE 410 Sales 110 Cash 112 Accounts Receivable 115 Inventory 116 Estimated Returns inventory 117 Prepaid Insurance EXPENSES 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Advertising EXOSA Stara Guia 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation Store Equipment 520 Sales Salines pense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense LIABILITIES 210 Accounts Payable 211 Salanes Payable 212 Customers Refunds Payable EQUITY 310 Common Stock LIABILE 530 One Sides Expertise 531 Rent Expense 210 Accounts Payable 211 Salaries Payable 212 Customers Refunds Payable 532 Insurance Expense 539 Miscellaneous Administrative Expense EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Labels and Amount Descriptions Labels Administrative expenses Current assets Current liabilities For the Year Ended May 31, 2018 Long-term liabilities May 31, 2018 Operating expenses Property, plant, and equipment Selling expenses Amount Descriptions Exp Amount Descriptions Dividends eous Cost of Goods Sold Gross profit Change in retained earnings Net income Net loss Retained earings, June 1, 2017 Retained earnings, May 31, 2018 Total administrative expenses Total assets Retained earnings, May 31, 2018 Expe Total administrative expenses eous Total assets Total current assets Total liabilities Total liabilities and stockholders' equity Total operating expenses Total property, plant, and equipment Total selling expenses Total stockholders' equity

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