ACCTG 211 Accounting Cycle Project 150 Points Nittany Lion Co. is a retail business that uses the perpetual inventory system. The account balances for Nittany Lion as of October 1, 2023 (unless otherwise indicated), are as follows: Cash Accounts Receivable $70,000 $247,500 Dividends $122,500 Sales $5,054,500 Inventory $620,000 Cost of Goods Sold $2,823,000 Estimated Returns Inventory $32,400 Sales Salaries Expense $664,800 Prepaid Insurance $19,800 Advertising Expense $293,500 Store Supplies $8,400 Depreciation Expense Store Equipment $569,500 Store Supplies Expense Accum. De pr. - Store Equip. $56,700 Misc. Selling Expense $12,600 Accounts Payable $106,800 Office Salaries Expense $382,100 Salaries Payable Customer Refunds Payable 39,800 Rent Expense Insurance Expense $83,700 Common Stock Retained Earnings $100,000 $599,800 Misc. Admin Expense $7,800 During October, the last month of the fiscal year, the following transactions were completed: 1. Paid rent for October, $4,000. 3. Purchased merchandise on account from Thor Co., terms 1/10, n/30, FOB shipping point, $36,000. 4. Paid freight on purchase of October 3, $600. 6. Sold merchandise on account to Nala Co., terms 3/10, n/30, FOB shipping point, $68,500. The cost of the goods sold was $41,000. 7. Received $22,300 cash from Perry Co. on account. 10. Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000. 13. Paid for merchandise purchased on October 3. 15. Paid advertising expense for last half of October, $10,000. 16. Received cash from sale of October 6. 19. Purchased merchandise for cash, $18,700. 19. Paid $33,450 to Apollo Co. on account. 20. Paid Nala Co. a cash refund of $13,095 for returned merchandise from sale of October 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000. 20. Sold merchandise on account to Finn Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the goods sold was $70,000. 21. For the convenience of Finn Co., paid freight on sale of October 20, $2,300. 21. Received $42,900 cash from Albi Co. on account. 21. Purchased merchandise on account from Chloe Co., terms 2/10, n/30, FOB destination, $88,000. 24. Returned damaged merchandise purchased on October 21, receiving a credit memo from the seller for $5,000. 26. Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. 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 goods sold was $57,000. 30. Received cash from sale of October 20 plus freight paid on October 21. 31. Paid for purchase of October 21, less return of October 24. Complete the following: 1. Prepare journal entries for all October transactions 2. Post journal entries to appropriate ledgers (t-charts) - remember there are starting balances above! 3. Prepare an unadjusted trial balance. 4. Prepare (and post) the adjusting journal entries given the following information: a. Inventory on October 31 = $592,000 b. Insurance expired during the year = $18,000 c. Store supplies on hand on October 31 = $5,800 d. Depreciation for the current year = $14,000 e. Accrued salaries on October 31: Sales salaries $8,600 Office salaries 5.600 14,200 f. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold. 5. Prepare an adjusted trial balance. 6. Prepare an Income Statement, Statement of Stockholder's Equity, and Balance Sheet. 7. Prepare and post the closing journal entries. 8. Prepare a post-closing trial balance.