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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
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 |
During May, the last month of the fiscal year, the following transactions were completed:
Record the following transactions on page 20 of the journal.
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. |
21 | For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. | |
21 | Received $42,900 cash from Gee Co. on account. | |
21 | Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. | |
24 | Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. | |
26 | Refunded cash on sales made for cash, $800. The defective merchandise was not returned by the customer. | |
28 | Paid sales salaries of $56,000 and office salaries of $29,000. | |
29 | Purchased store supplies for cash, $2,400. | |
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. | |
30 | Received cash from sale of May 20 plus freight paid on May 21. | |
31 | Paid for purchase of May 21, less return of May 24. |
Palisade Creek Co. |
Income Statement |
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5 | Selling expenses: | |||
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12 | Administrative expenses: | |||
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19 |
Palisade Creek Co. |
Statement of Owners Equity |
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5 |
Palisade Creek Co. |
Balance Sheet |
1 | Assets | ||
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14 | Liabilities | ||
15 | |||
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20 | Owners Equity | ||
21 | |||
22 |
PAGE 23
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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1 | Closing Entries | |||||||
2 | ||||||||
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Palisade Creek Co.
POST-CLOSING TRIAL BALANCE
May 31, 20Y7
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1 | Cash | ||
2 | Accounts Receivable | ||
3 | Merchandise Inventory | ||
4 | Prepaid Insurance | ||
5 | Store Supplies | ||
6 | Store Equipment | ||
7 | Accumulated Depreciation-Store Equipment | ||
8 | Accounts Payable | ||
9 | Customer Refunds Payable | ||
10 | Salaries Payable | ||
11 | Lynn Tolley, Capital | ||
12 | Totals |
4. | At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).
|
Palisade Creek Co.
ADJUSTED TRIAL BALANCE
May 31, 20Y7
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1 | Cash | ||
2 | Accounts Receivable | ||
3 | Merchandise Inventory | ||
4 | Prepaid Insurance | ||
5 | Store Supplies | ||
6 | Store Equipment | ||
7 | Accumulated Depreciation-Store Equipment | ||
8 | Accounts Payable | ||
9 | Customer Refunds Payable | ||
10 | Salaries Payable | ||
11 | Lynn Tolley, Capital | ||
12 | Lynn Tolley, Drawing | ||
13 | Sales | ||
14 | Cost of Merchandise Sold | ||
15 | Sales Salaries Expense | ||
16 | Advertising Expense | ||
17 | Depreciation Expense | ||
18 | Store Supplies Expense | ||
19 | Miscellaneous Selling Expense | ||
20 | Office Salaries Expense | ||
21 | Rent Expense | ||
22 | Insurance Expense | ||
23 | Miscellaneous Administrative Expense | ||
24 | Totals |
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