aseg Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: 110 Cash $83,600 112 Accounts Receivable 233,900 115 Merchandise Inventory 652,400 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 123 Store Equipment 569,500 124 Accumulated Depreciation-Store Equipment 56,700 210 Accounts Payable 96,600 211 Customer Refunds Payable 50,000 212 Salaries Payable 310 Lynn Tolley, Capital, June 1, 20Y6 685,300 311 Lynn Tolley, Drawing 135,000 410 Sales 5,069,000 510 Cost of Merchandise Sold 2,823,000 520 Sales Salaries Expense 664,800 521 Advertising Expense 281,000 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12,600 530 Office Salaries Expense 382, 100 531 Rent Expense 83,700 532 Insurance Expense 539 Miscellaneous Administrative Expense 7,800 Part 1: Journalize the transactions for May, the last month of the fiscal year, below. Part 2: Using the attached spreadsheet as your general ledger, post the journal entries you created in Part 1 to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. Please be sure to save the spreadsheet general ledger to use for the remaining parts of this comprehensive problem. If an amount box does not require an entry, leave it blank. May 1: Paid rent for May, $5,000.Description Post. Ref.DebitCredit Rent EXP 5000 cash SODO May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Description Post. Ref.DebitCredit Merch Inv. 35280 Accts Paulahire 35280 May 4: Paid freight on purchase of May 3, $600. Description Post. Ref.DebitCredit not accts payable herch Inv. ba May 6: Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000. Description Post. Ref.DebitCredit not salesk Acts Rec -67130 Accts Rect Sales 67130 sales x Cost ofgoodssore 41060 cost of merch sold * merch Inv. " May 7: Received $22,300 cash from Halstad Co. on account. Description Post. Ref.DebitCredit cash - 22300 Accts. Rec 22300 May 10: Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. Description Post. Ref.DebitCreditsales 54 0Ub Merch. Java 3 2000 May 13: Paid for merchandise purchased on May 3. Description Post. Ref.DebitCredit Accts Payable 35280 ash 25280 May 15: Paid advertising expense for last half of May, $11,000. Description Post. Ref.DebitCredit Advertising Exp. 11,000 cash . 11000 May 16: Received cash from sale of May 6. Description Post. Ref.DebitCredit Cash - 67130 Accts Rec. . 607130 May 19: Purchased merchandise for cash, $18,700. Description Post. Ref.DebitCredit Merch Inv. 18700 cash 18700 May 19: Paid $33,450 to Buttons Co. on account. Description Post. Ref.DebitCredit Accts. Payable 33450 cash 33450May 20: Paid Korman Co. a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise. Description Post. Ref.DebitCredit Sales Return , SODU cash 500O May 20: Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000. Description Post. Ref.DebitCredit Acct Rec - 108 900 Sales 108909 post ofcrats sud 10 000 Merch Inv. " 70000 May 21: For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. Description Post. Ref.DebitCredit 2300 cash 2300 May 21: Received $42,900 cash from Gee Co. on account. Description Post. Ref. DebitCredit 42900 42900 May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. Description Post. Ref.DebitCredit Merch Inv. - 87120 Acct . Payables 87120 May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.Description Post. Ref.DebitCredit -87120 not cash 87129 not AcctsRec May 26: Refunded cash on sales made for cash, $800. The defective merchandise was not returned by the customer. Description Post. Ref.DebitCredit sales Return 800 cash May 28: Paid sales salaries of $56,000 and office salaries of $29,000. Description Post. Ref.DebitCredit Salaries Sales 54000 Salanes OfE 29000 8sooo not cash, Salaries payable May 29: Purchased store supplies for cash, $2,400. Description Post. Ref.DebitCredit Supplies - 2400 Cash 2400 May 30: Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000. Description Post. Ref. DebitCredit Acct Rec - 77175 Sales mist cost of merchsold 470ub merch Ind. 470% May 30: Received cash from sale of May 20 plus freight paid on May 21. Description Post. Ref.DebitCreditComprehensive Problem 2 Part 10: You must complete parts 1, 2, 3, 4, 6, 7, 8 and 9 before attempting to complete part 10. Part 5 is optional. Prepare a post-closing trial balance. If an amount box does not require an entry, leave it blank, Palisade Creek Co. Post-Closing Trial Balance May 31, 2047 Debit Balances Credit Balances Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Accounts Payable Customer Refunds Payable Salaries Payable Lynn Tolley, Capital 2 more Check My Work uses remaining.Comprehensive Problem 2 Part 3: NOTE: You must complete parts 1 and 2 before completing part 3. Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank, Palisade Creek Co. Unadjusted Trial Balance May 31, 20Y7 Debit Balances Credit Balances Merchandise Inventory Prepaid Insurance ,/_,4'/4 Store Supplies / Store Equtpmen:/ (Accumulated DepreciationStore Equipment___/g(o() Accounts Payable 12400 Customer Refunds Payable _ S%00 Salaries Payable _ L5000 \\0?6'500 Lynn Tolley, Capital (23009 Lynn Tolley, Drawing = Advertising Expense ___ 1LLDO i Store Supplies Expense L (2000 Miscellaneous Selling Expense Office Salaries Expense. %m J Rent Expense 6(500 Insurance Expense Miscellaneous Administrative Expense T500 2 more Check My Work uses remaining. \fComprehensive Problem 2 Part 4 and 6: Part 5 is an optional work Note: You must complete parts 1, 2 and 3 before attempting to complete part 4 and part 6. sheet. the following adjustment data were assembled. Analyze and use these data to complete Part 6. 4. At the end of May, $585,200 12,000 4,000 14,000 a. Merchandise inventory on May 31 b. Insurance expired during the year C. Store supplies on hand on May 31 d. Depreciation for the current year . Accrued salaries on May 31: Sales salaries $7,000 13,600 Office salaries 6,600 f. The adjustment for customer refunds and allowances is $60,000. If an amount box does not require an entry, leave it blank. Post the adjusting 6. Journalize the adjusting entries, entries to the attached spreadsheet you used in parts 1 and 2. Post. Ref.Debit Credit Date Description Adjusting Entries Comprehensive Problem 2 Part 5: Optional work sheet Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet using the following adjustment data. $585,200 a. Merchandise inventory on May 31 b. Insurance expired during the year 12,000 c. Store supplies on hand on May 31 4,000 d. Depreciation for the current year 14,000 e. Accrued salaries on May 31: Sales salaries $7,000 6,600 13,600 Office salaries f. The adjustment for customer refunds and allowances is $60,000. If an amount box does not require an entry, leave it blank. Palisade Creek Co. End-of-Period Spreadsheet (Work Sheet) For the Year Ended May 31, 20Y7 Adjusted Trial Income Balance Adjustments Balance Statement Sheet Unadjusted Trial Balance Credit Debit Credit Credit Debit Account Title Debi Credit Debit Cre Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Store Supplies Store Equipment Accum. Depr.-Store Equip. Accounts Payable Customer Refunds Payable Salaries Payable Lynn Tolley, Capital Lynn Tolley, Drawing Sales Comprehensive Problem 2 Part 7: You must complete parts 1, 2, 3, 4 and 6 before completing part 7. Part 5 Is the optional work sheet. Prepare an adjusted trial balance. If a0 amount box does not require an entry, leave it blank. Palisade Creek Co. Adjusted Trial Balance May 31, 20Y7 Debit Balances Credit Balances Cash Accounts Recelvable Merchandise Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated DepreciationStore Equipment Accounts Payable Customer Refunds Payable Salaries Payable Lynn Tolley, Caplital Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense 2 more Check My Work uses remaining. 3. Prepare a balance sheet. Palisade Creek Co. Balance Sheet May 31, 20Y7 Assets Current assets: Total current assets Property, plant, and equipment: $ Total property, plant, and equipment Total assets Liabilities Current liabilities: to Total liabilities $ Owner's equity Total liabilities and owner's equity $ 2 more Check My Work uses remaining.Comprehensive Problem 2 Part 8: You must complete parts 1, 2, 3, 4, 6 and 7 before attempting to complete part 8. Note: part 5 is optional. 1. Prepare an income statement. Palisade Creek Co. Income Statement For the Year Ended May 31, 20Y7 Expenses: Selling expenses: $ Total selling expenses $ Administrative expenses: Total administrative expenses Total expenses Net Income 2. Prepare a statement of owner's equity. Palisade Creek Co. Statement of Owner's Equity For the Year Ended May 31, 20Y7Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Admin. Expense Net Income 2 more Check My Work uses remaining. Comprehensive Problam 2 Part 9: You must complete parts 1, 2, 3, 4, 6, 7 and 8 before attempting to complete part 9. Part 5 s optional. Journalize the closing entries. Then post the journal to the general ledger you created in part 1. Indicate closed accounts by inserting a line in both the balance columns opposite the closing entry. Insert the new balance in the owner's capital account. if an amount box does not require an entry, leave it blank. Date Description Post. Ref.Debit Credit 20Y7 f\\ ' bl R , 2 more Check My Work uses remaining