265 for Merchandising Businesses Chapter 5 Accounting May 26. Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. Paid sales salaries of $56,000 and office salaries of $29,000 Purchased store supplies for cash, $2,400. 28. 29. s0. Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,0o0. 30. Received cash from sale of May 20, less discount, plus freight paid on May 21 31. Paid for purchase of May 21, less return of May 24 and discount. Instructions L. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark in the Posting Reference column. Journalize the transactions for July, starting on Page 20 of the journal. 2Post the journal 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. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 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 $550,000 12,000 4,000 14,000 e Accrued salaries on May 31 Sales salaries Office salaries $7,000 6.600 13,600 5. (Optional.) Enter the unadjusted trial balance on a 10-column end-of-period spread- sheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance. rojects