Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2016 (unless otherwise indicated), are as follows. Assume all accounts have normal balances. 110 Cash $83,600 312 Dividends $135,000 112 Accounts Receivable 233,900 410 Sales 5,069,000 115 Inventory 624,400 510 Cost of Goods Sold 2,823,000 116 Estimated Returns Inventory 28,000 520 Sales Salaries Expense 664,800 117 Prepaid Insurance 16,800 521 Advertising Expense 281,000 118 Store Supplies 11,400 522 Depreciation Expense 123 Store Equipment 569,500 523 Store Supplies Expense 124 Accumulated Depreciation-Store Equipment 56,700 529 Miscellaneous Selling Expense 12,600 210 Accounts Payable 96,600 530 Office Salaries Expense 382,100 211 Salaries Payable - 531 Rent Expense 83,700 212 Customers Refunds Payable 50,000 532 Insurance Expense 310 Common Stock 100,000 539 Miscellaneous Administrative Expense 7,800 311 Retained Earnings 585,300 539 Part 1: Journalize the transactions below for May, the last month of the fiscal year. If an amount box does not require an entry, leave it blank. May 1: Paid rent for May, $5,000. Date Description May 1 Rent Expense Post. Ref. Credit Debit 5,000 Cash 5,000 May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Date Description Post. Ref. Debit Credit May 3 Inventory 35,280 Accounts Payable-Martin Co. 35,280 May 4: Paid freight on purchase of May 3, $ 600. Post. Ref. Credit Date May 4 Description Inventory Debit 600 Cash 600 May 6: Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the goods sold was $41,000. Post. Date Description Debit Credit Ref. May 6-Sales Accounts Receivable-Korman Co. 67,130 Sales 67,130 May 6-Cost Cost of Goods Sold 41,000 Inventory 41,000 May 7: Received $22,300 cash from Halstad Co. on account. Date Description Post. Ref. Debit Credit May 7 Cash 22,300 Accounts Receivable-Halstad Co. 22,300 May 10: Sold merchandise for cash, $54,000. The cost of the goods sold was $32,00 Date Description Post. Ref. Debit Credit May 10-Sales Cash 54,000 Sales 54,000 32,000 May 10-Cost Cost of Goods Sold Inventory 32,000 Debit Credit May 13: Paid for merchandise purchased on May 3. Post. Date Description Ref. May 13 Accounts Payable-Martin Co. Cash 35,280 35,280 May 15: Paid advertising expense for last half of May, $11,000. Date Description Post. Ref. Debit May 15 Credit May 16: Received cash from sale of May 6. Date Description Post. Ref. May 16 Debit Credit May 19: Purchased merchandise for cash, $18,700. Date Description Post. Ref. Debit Credit May 19 May 19: Paid $33,450 to Buttons Co. on account. Date Description Post. Ref. May 19 Debit Credit May 20: Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000. Date Description Post. Ref. Debit Credit May 20-Refund May 20-Cost May 20: Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the goods sold was $70,000. Date Description Post. Ref. Debit Credit May 20-Sales May 20-Cost May 21: For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. Date Description Post. Ref. Debit Credit May 21 May 21: Received $42,900 cash from Gee Co. on account. Description Post. Ref. Debit Credit Date May 21 May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. Date Description Post. Ref. Debit Credit May 21 May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Date Description Post. Ref. Debit Credit May 24 May 26: Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. Date Description Post. Ref. Debit Credit May 26-Refund May 26-Cost May 28: Paid sales salaries of $56,000 and office salaries of $29,000. Date Description Post. Ref. Debit Credit May 28 May 29: Purchased store supplies for cash, $2,400. Date Description Post. Ref. May 29 Debit Credit May 29: Purchased store supplies for cash, $2,400. Date Description Post. Ref. Debit Credit May 29 May 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 $47,000. Date Description Post. Ref. Debit Credit May 30-Sales May 30-Cost May 30: Received cash from sale of May 20 plus freight paid on May 21. Date Description Post. Ref. Debit Credit May 30 May 31: Paid for purchase of May 21, less return of May 24. Date Description Post. Ref. Debit Credit May 31 Part 2: Using the attached spreadsheet, post the journal entries from Part 1 to the general ledger. Extend 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. Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2016 (unless otherwise indicated), are as follows. Assume all accounts have normal balances. 110 Cash $83,600 312 Dividends $135,000 112 Accounts Receivable 233,900 410 Sales 5,069,000 115 Inventory 624,400 510 Cost of Goods Sold 2,823,000 116 Estimated Returns Inventory 28,000 520 Sales Salaries Expense 664,800 117 Prepaid Insurance 16,800 521 Advertising Expense 281,000 118 Store Supplies 11,400 522 Depreciation Expense 123 Store Equipment 569,500 523 Store Supplies Expense 124 Accumulated Depreciation-Store Equipment 56,700 529 Miscellaneous Selling Expense 12,600 210 Accounts Payable 96,600 530 Office Salaries Expense 382,100 211 Salaries Payable - 531 Rent Expense 83,700 212 Customers Refunds Payable 50,000 532 Insurance Expense 310 Common Stock 100,000 539 Miscellaneous Administrative Expense 7,800 311 Retained Earnings 585,300 539 Part 1: Journalize the transactions below for May, the last month of the fiscal year. If an amount box does not require an entry, leave it blank. May 1: Paid rent for May, $5,000. Date Description May 1 Rent Expense Post. Ref. Credit Debit 5,000 Cash 5,000 May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Date Description Post. Ref. Debit Credit May 3 Inventory 35,280 Accounts Payable-Martin Co. 35,280 May 4: Paid freight on purchase of May 3, $ 600. Post. Ref. Credit Date May 4 Description Inventory Debit 600 Cash 600 May 6: Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the goods sold was $41,000. Post. Date Description Debit Credit Ref. May 6-Sales Accounts Receivable-Korman Co. 67,130 Sales 67,130 May 6-Cost Cost of Goods Sold 41,000 Inventory 41,000 May 7: Received $22,300 cash from Halstad Co. on account. Date Description Post. Ref. Debit Credit May 7 Cash 22,300 Accounts Receivable-Halstad Co. 22,300 May 10: Sold merchandise for cash, $54,000. The cost of the goods sold was $32,00 Date Description Post. Ref. Debit Credit May 10-Sales Cash 54,000 Sales 54,000 32,000 May 10-Cost Cost of Goods Sold Inventory 32,000 Debit Credit May 13: Paid for merchandise purchased on May 3. Post. Date Description Ref. May 13 Accounts Payable-Martin Co. Cash 35,280 35,280 May 15: Paid advertising expense for last half of May, $11,000. Date Description Post. Ref. Debit May 15 Credit May 16: Received cash from sale of May 6. Date Description Post. Ref. May 16 Debit Credit May 19: Purchased merchandise for cash, $18,700. Date Description Post. Ref. Debit Credit May 19 May 19: Paid $33,450 to Buttons Co. on account. Date Description Post. Ref. May 19 Debit Credit May 20: Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000. Date Description Post. Ref. Debit Credit May 20-Refund May 20-Cost May 20: Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the goods sold was $70,000. Date Description Post. Ref. Debit Credit May 20-Sales May 20-Cost May 21: For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. Date Description Post. Ref. Debit Credit May 21 May 21: Received $42,900 cash from Gee Co. on account. Description Post. Ref. Debit Credit Date May 21 May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. Date Description Post. Ref. Debit Credit May 21 May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Date Description Post. Ref. Debit Credit May 24 May 26: Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. Date Description Post. Ref. Debit Credit May 26-Refund May 26-Cost May 28: Paid sales salaries of $56,000 and office salaries of $29,000. Date Description Post. Ref. Debit Credit May 28 May 29: Purchased store supplies for cash, $2,400. Date Description Post. Ref. May 29 Debit Credit May 29: Purchased store supplies for cash, $2,400. Date Description Post. Ref. Debit Credit May 29 May 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 $47,000. Date Description Post. Ref. Debit Credit May 30-Sales May 30-Cost May 30: Received cash from sale of May 20 plus freight paid on May 21. Date Description Post. Ref. Debit Credit May 30 May 31: Paid for purchase of May 21, less return of May 24. Date Description Post. Ref. Debit Credit May 31 Part 2: Using the attached spreadsheet, post the journal entries from Part 1 to the general ledger. Extend 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