Cash Accounts Receivable Debit Balances Credit Balances 99,430 245,875 Merchandise Inventory 585,200 Prepaid Insurance Store Supplies Store Equipment 4,800 4,000 569,500 Accumulated Depreciation-Store Equipment 70,700 Accounts Payable Customer Refunds Payable Salaries Payable Lynn Tolley, Capital 63,150 104,200 13,600 685,300 Lynn Tolley, Drawing 135,000 Sales 5,316,205 Cost of Merchandise Sold 3,026,950 Sales Salaries Expense 727,800 Advertising Expense 292,000 Depreciation Expense 14,000 Store Supplies Expense 9,800 Miscellaneous Selling Expense 12,600 Office Salaries Expense 417,700 Rent Expense 88,700 Insurance Expense 12,000 Miscellaneous Administrative Expense 7,800 6,253,155 6,253,155 Current assets: Total current assets Property, plant, and equipment: Total property, plant, and equipment Total assets Current liabilities: Total liabilities Total liabilities and owner's equity Palisade Creek Co. Balance Sheet May 31, 2017 Assets Liabilities Owner's equity 2. Prepare a statement of owner's equity. Palisade Creek Co. Statement of Owner's Equity For the Year Ended May 31, 20Y7 1. Prepare an income statement. Sales Cost of merchandise sold Gross profit Expenses: Selling expenses: Salaries payable Total selling expenses Administrative expenses: Total administrative expenses Total expenses Net income Palisade Creek Co. Income Statement For the Year Ended May 31, 20Y7 2017 May 31 May 31 Date Description Post. Ref. Debit Closing Entries Page 23 Credit Cash Palisade Creek Co. Post-Closing Trial Balance May 31, 20Y7 Accounts Receivable Merchandise Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Accounts Payable Customer Refunds Payable Salaries Payable Lynn Tolley, Capital Debit Balances Credit Balances