Note that you are completing the accounting cycle for a company called Palisade Creek Company that is a merchandising company.  You are to complete the accounting cycle for May 20Y7. The balances as of May 1, 20Y7 (your beginning balances) are included on the trial balance on page 341 and in the beginning balances of your file’s General Ledger.  Make sure you read the information about the company on pages 341 – 342.

You are to complete the following instructions (do not follow the instructions in the textbook):

• Prepare journal entries to record the transactions and events that occur from May 1^st to May 31^st for Palisade Creek Company.  Post those entries to the accounts in the general ledger.
• Prepare an unadjusted trial balance on the “Work Sheet” tab.
• Prepare adjusting journal entries to reflect a through f on instruction point 4 on page 342.  Post those entries to the accounts in the general ledger.
• Prepare the adjusted trial balance on the “Work Sheet” tab.
• Prepare an income statement for the month ended May 31, 20Y7.
• Prepare a statement of owner’s equity for the three months ended May 31, 20Y7.
• Prepare a classified balance sheet as of May 31, 20Y7.
• Record and post the necessary closing journal entries for Business Solutions.
• Prepare a post-closing trial balance as of May 31, 20Y7.
• 110 Cash $83,600                                                                             529 Miscellaneous Selling
• 112 Accounts Receivable $233,900                                                      Expense $12,600
• 115 Merchandise Inventory $ 652,400                                          530 Office Salaries Expense
• 117 Prepaid Insurance $16,800                                                                    $382,100
• 118 Store Supplies $11,400                                                            531 Rent Expense $83,700
• 123 Store Equipment $569,500                                                       532 Insurance Expense -
• 124 Accumulated Depreciation-Store Equipment $56,700      539 Mis. Admin. Expense$7,800
• 210 Accounts Payable $96,000
• 211 Customer Refunds Payable $50,000
• 212 Salaries Payable –
• 310 Lynn Tolley, Capital, June 1, 20Y6 $685,300
• 311 Lynn Tolley Drawing $135,00
• 410 Sales $5069,000
• 510 Cost of Merchandise Sold $2823,000
• 520 Sales Salaries Expense $664,800
• 521 Advertising Expense $281,000
• 522 Depreciation Expense –
• 523 Store Supplies –

Answer rating: 100% (QA)

IMPORTANT NOTE IT HAS BEEN NOTICED THAT THE QUESTION IS VESTED WITH MATERIAL ERRORS SO MUCH SO THATWITHOUT CORRECTION THEREOF IT IS DIFFICULT TO SOLVE EXCEPT BY PUTTING THE DIFFERENCE TO SUSPENSE ACCO... View the full answer