Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete Part 6. a. Merchandise inventory on
4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete Part 6.
a. | Merchandise inventory on May 31 | $585,200 | ||
b. | Insurance expired during the year | 12,000 | ||
c. | Store supplies on hand on May 31 | 4,000 | ||
d. | Depreciation for the current year | 14,000 | ||
e. | Accrued salaries on May 31: | |||
Sales salaries | $7,000 | |||
Office salaries | 6,600 | 13,600 | ||
f. | The adjustment for customer refunds and allowances is $60,000. |
6. Journalize the adjusting entries. If an amount box does not require an entry, leave it blank. Post the adjusting entries to the attached spreadsheet you used in parts 1 and 2.
Page 22 | ||||
---|---|---|---|---|
Date | Description | Post. Ref. | Debit | Credit |
Adjusting Entries | ||||
20Y7 | ||||
May 31 | ||||
May 31 | ||||
May 31 | ||||
May 31 | ||||
May 31 | ||||
May 31 | ||||
Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank.
Palisade Creek Co. Unadjusted Trial Balance May 31, 20Y7 | ||
---|---|---|
Debit Balances | Credit Balances | |
Cash | ||
Accounts Receivable | ||
Merchandise Inventory | ||
Prepaid Insurance | ||
Store Supplies | ||
Store Equipment | ||
Accumulated DepreciationStore Equipment | ||
Accounts Payable | ||
Customer Refunds Payable | ||
Salaries Payable | ||
Lynn Tolley, Capital | ||
Lynn Tolley, Drawing | ||
Sales | ||
Cost of Merchandise Sold | ||
Sales Salaries Expense | ||
Advertising Expense | ||
Depreciation Expense | ||
Store Supplies Expense | ||
Miscellaneous Selling Expense | ||
Office Salaries Expense | ||
Rent Expense | ||
Insurance Expense | ||
Miscellaneous Administrative Expense | ||
total |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started