Palisade Creek Co$.$ is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co$.$ as of May $1,20$Y$7($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 DepreciationStore Equipment $56,700$

$210$ Accounts Payable $96,600$

$211$ Customer Refunds Payable $50,000$

$212$ Salaries Payable

$310$ Lynn Tolley, Capital, June $1,20$Y$6685,300$

$311$ 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.$

  

Answer rating: 100% (QA)

Answer Part 1 Journalize the transactions for May the last mon... View the full answer