Chart of Accounts 123 Store Equipment 522 Depreciation Expense 124 Accumulated Depreciation-Store Equipment 523 Store Supplies Expense 529 Miscellaneous Selling Expense LIABILITIES 530 Office Salaries Expense 210 Accounts Payable 531 Rent Expense 211 Salaries Payable 532 Insurance Expense 212 Customers Refunds Payable 539 Miscellaneous Administrative Expense EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Instructions Palisade Creek Co. is a merchandising business that uses the perpetual inventory_system. During May, the last month of the fiscal year, transactions were completed. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a retained earnings statement, and a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a retained earnings statement, and a balance sheet. * 9. A. Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the Chart of Accounts for exact wording of account titles. 9. B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. Labels and Amount Descriptions Labels Administrative expenses Current assets Current liabilities For the Year Ended May 31, 2018 Long-term liabilities May 31, 2018 Operating expenses Property, plant, and equipment Selling expenses Amount Descriptions Dividends Cost of Goods Sold Gross profit Labels and Amount Descriptions Amount Descriptions Dividends Cost of Goods Sold Gross profit Change in retained earnings Net income Net loss Retained earnings, June 1, 2017 Retained earnings, May 31, 2018 Total administrative expenses Total assets Total current assets Total liabilities Total liabilities and stockholders' equity Total operating expenses Journal Shaded cells have feedback. 9. A. Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the Chart of Accounts for exact wording of account titles. 9. B. Add the appropriate posting reference to the journal. Question not attempted. PAGE 23 JOURNAL Score: 0/226 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Closing Entries 2 Income Statement Shaded cells have feedback. 8.A. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement. Be sure to complete the statement heading. If a net loss is incurred, enter that amount as a negative number using a minus sign. Enter all other amounts as positive numbers. Refer to the problem data and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (1) will automatically appear if it is required. Question not attempted. Palisade Creek Co. Score: 0/146 Income Statement (Label) 1 2 3 4 (Label) 5 Selling expenses: Income Statement Shaded cells have feedback. 4 (Label) 5 Selling expenses: 6 7 8 9 10 11 12 Administrative expenses: 13 14 15 16 17 Retained Earnings Statement Shaded cells have feedback. X 8.B. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a retained earnings statement. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a retained earnings statement. Be sure to complete the statement heading. If a net loss has been incurred or there has been a decrease in retained earnings, enter that amount as a negative number using a minus sign. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Question not attempted. Palisade Creek Co. Score: 0/45 Retained Earnings Statement (Label) 1 2 3 4 5 Balance Sheet Shaded cells have feedback. X 8.C. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a balance sheet. Be sure to complete the statement heading. Refer to the problem data and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers. A colon () will automatically appear if it is required. Less" or "Plus" will automatically appear if it is required. Palisade Creek Co. Score: 20/177 Balance Sheet (Label) 1 Assets 2 Current assets: 3 Accounts receivable 4 Cash 5 Prepaid insurance 6 Total current assets Balance Sheet Shaded cells have feedback. 6 Total current assets 7 8 9 10 (Label) 11 12 13 14 15 Liabilities 16 (Label) 17 18 19 Balance Sheet Shaded cells have feedback. X 15 Liabilities 16 (Label) 17 18 19 20 21 Stockholders' Equity 22 23 24 25 Points: 4.75 / 42 Shaded cells have feedback. X Post-Closing Trial Balance 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. Question not attempted. Palisade Creek Co. Score: 0/55 POST-CLOSING TRIAL BALANCE May 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Inventory 4 Estimated Returns Inventory 5 Prepaid Insurance 6 Store Supplies 7 Store Equipment 8 Accumulated Depreciation-Store Equipment 9 Accounts Pavable Post-Closing Trial Balance Shaded cells have feedback. 3 Inventory 4. Estimated Returns Inventory 5 Prepaid Insurance 6 Store Supplies 7 Store Equipment 8 Accumulated Depreciation-Store Equipment 9 Accounts Payable 10 Salaries Payable 11 Customers Refunds Payable 12 Common Stock 13 Retained Earnings 14 Totals Points: 0/15 Chart of Accounts CHART OF ACCOUNTS Palisade Creek Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 112 Accounts Receivable 115 Inventory EXPENSES 116 Estimated Returns Inventory 510 Cost of Goods Sold 117 Prepaid Insurance 520 Sales Salaries Expense 118 Store Supplies 521 Advertising Expense 123 Store Equipment 522 Depreciation Expense 124 Accumulated Depreciation-Store Equipment 523 Store Supplies Expense 529 Miscellaneous Selling Expense Chart of Accounts 123 Store Equipment 522 Depreciation Expense 124 Accumulated Depreciation-Store Equipment 523 Store Supplies Expense 529 Miscellaneous Selling Expense LIABILITIES 530 Office Salaries Expense 210 Accounts Payable 531 Rent Expense 211 Salaries Payable 532 Insurance Expense 212 Customers Refunds Payable 539 Miscellaneous Administrative Expense EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Instructions Palisade Creek Co. is a merchandising business that uses the perpetual inventory_system. During May, the last month of the fiscal year, transactions were completed. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a retained earnings statement, and a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a retained earnings statement, and a balance sheet. * 9. A. Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the Chart of Accounts for exact wording of account titles. 9. B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. Labels and Amount Descriptions Labels Administrative expenses Current assets Current liabilities For the Year Ended May 31, 2018 Long-term liabilities May 31, 2018 Operating expenses Property, plant, and equipment Selling expenses Amount Descriptions Dividends Cost of Goods Sold Gross profit Labels and Amount Descriptions Amount Descriptions Dividends Cost of Goods Sold Gross profit Change in retained earnings Net income Net loss Retained earnings, June 1, 2017 Retained earnings, May 31, 2018 Total administrative expenses Total assets Total current assets Total liabilities Total liabilities and stockholders' equity Total operating expenses Journal Shaded cells have feedback. 9. A. Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the Chart of Accounts for exact wording of account titles. 9. B. Add the appropriate posting reference to the journal. Question not attempted. PAGE 23 JOURNAL Score: 0/226 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Closing Entries 2 Income Statement Shaded cells have feedback. 8.A. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement. Be sure to complete the statement heading. If a net loss is incurred, enter that amount as a negative number using a minus sign. Enter all other amounts as positive numbers. Refer to the problem data and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (1) will automatically appear if it is required. Question not attempted. Palisade Creek Co. Score: 0/146 Income Statement (Label) 1 2 3 4 (Label) 5 Selling expenses: Income Statement Shaded cells have feedback. 4 (Label) 5 Selling expenses: 6 7 8 9 10 11 12 Administrative expenses: 13 14 15 16 17 Retained Earnings Statement Shaded cells have feedback. X 8.B. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a retained earnings statement. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a retained earnings statement. Be sure to complete the statement heading. If a net loss has been incurred or there has been a decrease in retained earnings, enter that amount as a negative number using a minus sign. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. Question not attempted. Palisade Creek Co. Score: 0/45 Retained Earnings Statement (Label) 1 2 3 4 5 Balance Sheet Shaded cells have feedback. X 8.C. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a balance sheet. Be sure to complete the statement heading. Refer to the problem data and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers. A colon () will automatically appear if it is required. Less" or "Plus" will automatically appear if it is required. Palisade Creek Co. Score: 20/177 Balance Sheet (Label) 1 Assets 2 Current assets: 3 Accounts receivable 4 Cash 5 Prepaid insurance 6 Total current assets Balance Sheet Shaded cells have feedback. 6 Total current assets 7 8 9 10 (Label) 11 12 13 14 15 Liabilities 16 (Label) 17 18 19 Balance Sheet Shaded cells have feedback. X 15 Liabilities 16 (Label) 17 18 19 20 21 Stockholders' Equity 22 23 24 25 Points: 4.75 / 42 Shaded cells have feedback. X Post-Closing Trial Balance 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. Question not attempted. Palisade Creek Co. Score: 0/55 POST-CLOSING TRIAL BALANCE May 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Inventory 4 Estimated Returns Inventory 5 Prepaid Insurance 6 Store Supplies 7 Store Equipment 8 Accumulated Depreciation-Store Equipment 9 Accounts Pavable Post-Closing Trial Balance Shaded cells have feedback. 3 Inventory 4. Estimated Returns Inventory 5 Prepaid Insurance 6 Store Supplies 7 Store Equipment 8 Accumulated Depreciation-Store Equipment 9 Accounts Payable 10 Salaries Payable 11 Customers Refunds Payable 12 Common Stock 13 Retained Earnings 14 Totals Points: 0/15 Chart of Accounts CHART OF ACCOUNTS Palisade Creek Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 112 Accounts Receivable 115 Inventory EXPENSES 116 Estimated Returns Inventory 510 Cost of Goods Sold 117 Prepaid Insurance 520 Sales Salaries Expense 118 Store Supplies 521 Advertising Expense 123 Store Equipment 522 Depreciation Expense 124 Accumulated Depreciation-Store Equipment 523 Store Supplies Expense 529 Miscellaneous Selling Expense