1. COMPPRO.D2.01.PART.1.AND.PART.2 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, 2EIY7 (unless otherwise indicated), are as follows: 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 11? Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable 310 Lynn Tolley, Capital, June 1, 2DY6 311 Lynn Tolley, Drawing 410 Sales 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Ofce Salaries Expense S31 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense $53,500 233,900 552,400 15,500 11,400 559,500 55,700 95,500 50,000 555,300 135,000 5,059,000 2,523,000 554,500 251,000 12,500 352,100 53,700 7,500