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 have normal balances. 110 Cash $83,600 312 Dividends $135,000 112 Accounts Receivable 233,900 410 Sales 5,069,000 115 Inventory 624,400 510 Cost of Goods Sold 2,823,000 116 Estimated Returns Inventory 28,000 520 Sales Salaries Expense 664,800 117 Prepaid Insurance 16,800 521 Advertising Expense 281,000 118 Store Supplies 11,400 522 Depreciation Expense 123 Store Equipment 569,500 523 Store Supplies Expense 124 Accumulated Depreciation--Store Equipment 56,700 529 Miscellaneous Selling Expense 12,600 210 Accounts Payable 96,600 530 Office Salaries Expense 382,100 211 Salaries Payable 531 Rent Expense 83,700 212 Customers Refunds Payable 50,000 532 Insurance Expense 310 Common Stock 100.000 539 Miscellaneous Administrative Expense 7,800 311 Retained Earnings 585,300 Part 1: Journalize the transactions below for May, the last month of the fiscal year. If an amount box does not require an entry, leav 539 Comprehensive Problem 2 Part 8: You must complete parts 1, 2, 3, 4, 6 and 7 before attempting to complete part 8. Note: part 5 is optional. 1. Prepare a multiple step income statement. Palisade Creek Co Income Statement For the Year Ended May 31, 2016 SS 5,009,000 Sales Cost of goods sold Gross profit Operating Expenses: Selling expenses: Sales salaries expense 55 Advertising expense Depreciation expense Store supplies expense Miscellaneous selling expense Total selling expenses Administrative expenses 5$ Office salaries expense 55 382, 100 All work saved Gross profit Operating Expenses: Selling expenses: Sales salaries expense $$ Advertising expense Depreciation expense Store supplies expense Miscellaneous selling expense Total selling expenses $$ Administrative expenses: Office salaries expense 55 382,100 Rent expense 83,700 Insurance expense Miscellaneous administrative expense Total administrative expenses Total operating expenses $$ Net income 2. Prepare a statement of stockholders' equity. Assume that additional common stock of $10,000 was issued in Janua Palisade Creek Co. Statement of Stockholders' Equity For the Year Ended May 31, 2016 2. Prepare a statement of stockholders' equity. Assume that additional common stock of $10,000 was issued ir Palisade Creek Co. Statement of Stockholders Equity For the Year Ended May 31, 2016 Common Stock Retained Earnings Total Balances, June 1, 2015 90,000 $ $$ Issued common stock 10,000 Net income S $ Dividends Balances, May 31, 2016 $$ 100,000 $ 3. Prepare a balance sheet. Palisade Creek Co. Balance Sheet May 31, 2016 Assets Current assets: Cash $s Accounts receivable Inventory All work se 3. Prepare a balance sheet. Pallade Creelo Co. Balance Sheet May 31, 2016 Assets Current assets: Cash 55 Accounts receivable Inventory SS Total current assets Property, plant, and equipment: Total property, plant, and equipment SS Total assets Liabilities Current liabilities: All work saved WASILSILI Total current assets $$ Property, plant, and equipment: 55 Total property, plant, and equipment Total assets S Liabilities Current liabilities: $$ Total liabilities Ss Stockholders' Equity 55 Total stockholders' equity S Total liabilities and Stockholders' Equity All work saved