Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Cosa retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2016 (unless otherwise indicated), are a 110 Cash $83.600 312 Dividends $135,000 112 Accounts Receivable 233,900 410 Sales 5,069.000 115 Inventory 624400 310 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 $23Store Supplies Expense 124 Accumulated Depredation Store Equipment 56.700 529 Miscellaneous Selling Expense 12.600 210 Accounts Payable 96.600 530 Office Salaries Expanse 362.100 211 Salones Payable 531 Rent Expense 83.700 212 Customers Refunds Payable 50.000 532 Insurance Expense 310 Common Stock 100.000 519 Miscellaneous Administrative Expense 7.500 311 Retained Earnings 585,300 539 Part 11 Soumal the transaction below for May the last month of the year famount box des not require any blank May 1: Paident for May $5.000 Date Description Post. Ret. Debit Credit May 1 May Durchased merchande account for a 10.03.36.000 Description Post Ref Debit Credit May Date 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 blan May 1: Paid rent for May, $5,000. Date Description May 1 Post. Ref. Debit Credit May 3: Purchased merchandise on account from Martin Co., terms 2/10, 1/30, FOB shipping point $36.000 Date Description Post. Ref. Debit Credit May 3 May 4: Pald freight on purchase of May 3, $600. Date Description Post. Ref. Debit Credit May 4 May 6: Sold merchandise on account to Korman coterms 2/10, /30. FOB shipping point. 568,500. The cost of the goods sold was $41.000. Date Description Post. Ref. Debit Credit May 6-Sales May 6-Cost May 6: Sold merchandise on account to Korman Co. terms 2/10, r/30. FOB shipping point. $68,500. The cost of the goods sold was 541.000. Date Description Post. Ref. Debit Credit May 6-Sales May 6-Cost May 7: Received $22.300 cash from Halstad Co. on account. Date Description Post. Ref. Debit May 7 Credit May 10: Sold merchandise for cash $54,000. The cost of the goods sold was $32.000 Date Description Post. Ref Debit Credit May 10-Sales May 10-Cost May 13 Paid for the chance the Date Description Post Rell MY 33 Debit Credit May A Received $22,300 cash from Halstad Co. on account. Date Description Post. Ref. Debit May 7 Credit May 10: Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000. Date Description Post. Ref. Debit Credit May 10-Sales May 10-Cost May 13: Paid for merchandise purchased on May 3. Date Description Post. Ref. Debit Credit May 13 May 15: Paid advertising expense for last half of May, $11.000. Date Description Post. Ref. Debit May 15 Credit Date ved cash from sale of May Descript ay 16 19. Purchased merchandise for cash $10.700 Cate Post Rel - 19 be Credit 19: Paid $33.450 to Bus Coccount Description Postel 39 Debit Credit Paid Karmana a cash round of $13.230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandises $12.500 and the cost of the returned merchandise was $8.000 Date Description Post. Ref. Debit Credit Rahund -Cost May 20: Sold merchandise on account to Crescent Co. terms 1/10, r/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, 52.300. Date Description Post. Ref. Debit Credit May 21 May 21: Received $42.900 cash from Gee Co. on account Date Description Post. Ref. Debit Credit May 21 May 21 Purchased merchandise on account from Ostermen co ter 1:1030 FOB destination 588.000, Date Description Post. Ref. Debit Credit 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 $5,00 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: Pald sales salaries of $55.000 and office salaries of 529.000. Date Description Post. Ref. Debit Credit May 28 May 28 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 Costerma 2/10/30, 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 blus freight paid on May 21 Date Description Post. Ref. Debit Credit May 30 May 311 Paid for purchase of May 21, run of May 24 May 29 Purchased store supplies for cash, 527400% Date Description Post. Ref. Debit Credit May 29 May 30: Sold merchandise on account to Turner Co., terms 2/10, 1/30, FOB shipping point, $78,750. The cost of the goods sold was 547,000. 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 311 Paid for purchase of May 21, le return of May 24 Date Description Post. Ref. Debit Credit May 31 Part 2 Using the attached report the journal arts from Part 1 to the general ledge Extend the month-end balances to the appropriate nebulced to update of boat to the sccounts receivable and accounts payable tubeldiary led Palisade Creek Co. Unadjusted Trial Balance May 31, 2016 Debit Credit Cash Accounts Receivable Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation Store Equipment Accounts Payable Salaries Payable Customers Refunds Payable Common Stock Retained Earnings Dividends Sales Cost of Goods Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Comprehensive Problem 2 Part 4 and 6: Note: You must complete parts 1, 2 and 3 before attempting to complete part 4 and part 6. Part 5 is an optional work she 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete Part 6 a. Inventory on May 31 $570,000 b. Insurance expired during the year 12,000 c. Store supplies on hand on May 31 4,000 d. Depreciation for the current year 14,000 e. Accrued salaries on May 31: Sales salaries $7.000 office salaries 6,600 13,600 f. The adjustment for customer returns and allowances is $60.000 for sales and $35.000 for cost of goods sold. 6. Journalize the adjusting entries. If an amount box does not require an entry leave it blank. Post the adjusting entries to Date Description Post. Ref. Debit Credit Adjusting Entries 2016 May 31 May 31 II II May 31 Comprehensive Problem 2 Part 7: You must complete parts 1, 2, 3, 4 and 6 before completing part 7. Part 5 is the optional work sheet. Prepare an adjusted trial balance. If an amount box does not require an entry leave it blank. Palisade Creek Co. Adjusted Trial Balance May 31, 2016 Debit Credit Cash Accounts Receivable