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.

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 an income statement.

Palisade Creek Co.

Income Statement

For the Year Ended May 31, 20Y7Sales

$fill in the blank 2

fill in the blank 4

$fill in the blank 6

Expenses:Selling expenses:

$fill in the blank 8

fill in the blank 10

fill in the blank 12

fill in the blank 14

fill in the blank 16

Total selling expenses$fill in the blank 17

Administrative expenses:

$fill in the blank 19

fill in the blank 21

fill in the blank 23

fill in the blank 25

Total administrative expensesfill in the blank 26

Total expensesfill in the blank 27

Net income$fill in the blank 28

2.Prepare a statement of owner's equity.

Palisade Creek Co.

Statement of Owner's Equity

For the Year Ended May 31, 20Y7

$fill in the blank 30

$fill in the blank 32

fill in the blank 34

fill in the blank 36

$fill in the blank 38

3.Prepare a balance sheet.

Palisade Creek Co.

Balance Sheet

May 31, 20Y7AssetsCurrent assets:

$fill in the blank 40

fill in the blank 42

fill in the blank 44

fill in the blank 46

fill in the blank 48

Total current assets$fill in the blank 49

Property, plant, and equipment:

$fill in the blank 51

fill in the blank 53

Total property, plant, and equipmentfill in the blank 54

Total assets$fill in the blank 55

LiabilitiesCurrent liabilities:

$fill in the blank 57

fill in the blank 59

fill in the blank 61

Total liabilities$fill in the blank 62

Owner's equity

fill in the blank 64

Total liabilities and owner's equity$fill in the blank 65

1.Prepare an income statement.

Palisade Creek Co.

Income Statement

For the Year Ended May 31, 20Y7