comprehensive problem 2 (part 3)

comprehensive problem 2 (part 4-6)

comprehensive problem 2 (part 7)

Comprehensive problem 2 (part 8)

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Comprehensive problem 2 (part 9)

Comprehensive problem 2 (part 10)

May 13: Paid for merchandise purchased on May 3. May 15: Paid advertising expense for last half of May, $11,000. May 17: Received cash from sale of May 2. May 4: Paid freight on purchase of May 3,$600. May 7: Received $22,300 cash from Halstad Co. on account. Part 3: NOTE: You must complete parts 1 and 2 before completing part 3 . Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank. 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 Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense Liabilities Current liabilities: Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity May 21: For the convenience of Crescent Co., paid freight on sale of May 21,$2,300. May 31: Paid for purchase of May 21, less return of May 24. posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. May 30: Sold merchandise on account to Turner Co., terms n/30, FOB shipping point, $78,750. The cost of the goods sold wa May 31: Received cash from sale of May 21 plus freight. May 21: Received $42,900 cash from Gee Co. on account. May 21: Purchased merchandise on account from Osterman Co., terms 1/10,n/30, FOB destination, $88,000. May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. 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. 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 Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense 50,000 100,000 5,069,000 2,823,000 664,800 281,000 12,600 Part 9: You must complete parts 1,2,3,4,6,7 and 8 before attempting to complete part 9 . Part 5 is the optional worksheet. Journalize the closing entries. Then post the journal to the general ledger you created in part 1 . Indicate closed accounts by inserting a line in both closing entry. Insert the new balance in the retained earnings account. If an amount box does not require an entry, leave it blank. 2. Prepare a statement of stockholders' equity. Assume that additional common stock of $10,000 was issued in January 20Y6. Palisade Creek Co. Statement of Stockholders' Equity For the Year Ended May 31, 20 Y6 May 28: Paid sales salaries of $56,000 and office salaries of $29,000. May 29: Purchased store supplies for cash, $2,400. 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. 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 . May 2: Sold merchandise on account to Korman Co., terms n/15, FOB shipping point, $68,500. The cost of the goods sold was $41,000. May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. 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, 20 Y6 (unless otherwise indicated), are as follows. Assume all accounts have normal balances. Customers Refunds Payable Common Stock Retained Earnings You must complete parts 1,2,3,4,6,7,8 and 9 before attempting to complete part 10. Part 5 is the optional worksheet. Prepare a post-closing trial balance. If an amount box does not require an entry, leave it blank. 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. Mav 1: Paid rent for Mav, $5.000. May 19: Paid $33,450 to Buttons Co. on account. May 20: Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 2 . The cost of the returned merchandise was $8,000. 60,000 Part 8: You must complete parts 1, 2, 3, 4, 6 and 7 before attempting to complete part 8 . Note: Part 5 is the optional worksheet. 1. Prepare a multiple-step income statement. 3. Prepare a balance sheet. Palisade Creek Co. Balance Sheet May 31, 20 Y6 Assets Current assets: Total current assets Property, plant, and equipment: Total property, plant, and equipment Total assets Expenses: Selling expenses: $ Total selling expenses $ Administrative expenses: Total administrative expenses Total expenses Net income