Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Co. is a retall business that uses the perpetual Inventory system. The account balances for Palisade Groek as of May 1, 2016 (unless otherwise indicated), are as follows. Assume all accounts have normal balances 110 Cash $63,600 312 Dividends $135,000 112 Accounts Receivable 233,900 410 Sales 5,000,000 115 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 Accurated Depreciation-store Equipment 56,700 529 Miscellaneous Seling Experise 12.600 210 Accounts Payable 96,600 530 Office Salaries Expense 362,100 211 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 7.000 311 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 Hwy 1: Paid rent for May, $5,000 Date Description Post. Ref. Debit Credit 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 sheet. 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 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 the attached spreadsheet you used in parts 1 and 2 Date Post. Ref. Debit Credit Description Adjusting Entries 2016 May 31 Part 5: Optional work sheet Enter the unadjusted trial balance on a 10-column end of period spreadsheet (worksheet), and complete the spreadsheet using the following adjustment data. $570,000 12.000 4,000 a. Inventory on May 31 b. Insurance expired during the year Store supplies on hand on May 31 d. Depreciation for the current year e. Accrued salaries on May 31: Sales salaries Office salaries 14.000 $7.000 6,600 13,600 ). The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold IT an amount box does not require an entry, leave it blank. Palisade Creek Co. End-of-Period Spreadsheet (Work Sheet) For the Year Ended May 31, 2016 Adjustments Adjusted Trial Balance Debit Credit Debit Credit Income Statement Unadjusted Trial Balance Debit Credit Debit Credit Account Title 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 Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Accounts Payable Salaries Payable Customers Refunds Payable Common Stark 2. Prepare a statement of stockholders' equity. Assume that additional common stock of $10,000 was issued in January 2016. Statement of Stockholders' Equity Common Stock Retained Earnings Total $$ $$ 3. Prepare a balance sheet. Halance Sheet Assets Current assets: Total current assets Property, plant, and equipment: Total property, plant, and equipment Total assets Part 9: dosed accounts by inserting a line in both the balance columns opposite the dosing entry. Insert You must complete parts 1, 2, 3, 4, 6, 7 and 8 before attempting to complete part 9 Part 5 is optional Journalize the closing entries. The post the journal to the general ledger you created in part 1. Indi the new balance in the retained earnings account. If an amount box does not require an entry, leave it blank. Description Post. Rel. Debit Credit May 31 Previous Next Part 10 You must complete parts 1, 2, 3, 4, 6, 7, 8 and 9 before attempting to complete part 10. Part 5 is optional. Prepare a post-closing trial balance. If an amount box does not require an entry, leave it blank. Palisade Creek Co. Post-Closing Trial Balance May 31, 2016 Debit Credits 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