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, 2016
Sales			5,316,205
Cost of merchandise Sold			2,991,950
Gross Profit			2,324,255
Expenses:
Selling expenses:
Sales salaries expense	727,800
Advertising expense	292,000
Depreciation expense	14,000
Store supplies expense	9,800
Miscellaneous Selling expense	12,600
Total selling expenses		1,056,200
Administrative expenses:
Office salaries expense	471,700
Rent expense	88,700
Insurance expense	12,000
Miscellaneous administrative expense	7,800
Total administrative expenses		526,200
Total expenses			1,582,400
Net income			741,855

Prepare a statement of owner's equity.

Palisade Creek Co. Statement of Owner's Equity For the Year Ended May 31, 2016
Lynn Tolley, capital, June 1, 2015		???
Net income for the year	741,855
Less Withdrawals	???
Increase in owners equity		???
Lynn Tolley, capital, May 31, 2016		???

Prepare a balance sheet.

Palisade Creek Co. Balance Sheet May 31, 2016
Assets
Current assets:
Cash	84,500
Accounts receivable	245,875
Merchandise inventory	570,000
Estimated returns inventory	50,200
Prepaid Insurance	4,800
Store supplies	4,000
Total current assets		959,375
Property, plant and equipment:
Store equipment	569,500
Less accumulated depreciation	-70,700
Total property, plant and equipment		498,800
Total assets		1,458,175
Liabilities
Current liabilities:
Accounts payable	63,150
Salaries payable	13,600
Customers refund payable	89,270
Total liabilities		166,020
Owner's equity
Lynn Tolley, capital		1,292,155
Total liabilities and owner's equity		1,458,175

Comprehensive Problem 2 Part 9:

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. Then post the journal to the general ledger you created in part 1. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. Indicate closed accounts by inserting a line in both the balance columns opposite the closing entry. Insert the new balance in the owner's capital account.

If an amount box does not require an entry, leave it blank.

Date	Description	Post. Ref.	Debit	Credit
2016
May 31	Choices to Choose from: Sales Income Summary Insurance Expense Lynn Tolley, Capital Lynn Tolley, Drawing		???
	Choices to Choose from: Accounts Payable Income Summary Lynn Tolley, Drawing Sales Store Supplies			???
May 31	Choices to Choose from: Accounts Receivable Accumulated Depreciation Income Summary Income Summary Lynn Tolley, Capital Sales Discounts		???	???
	Choices to Choose from: Cash Cost of Merchandise Sold Income Summary Lynn Tolley, Drawing Merchandise Inventory		???	???
	Choices to Choose from: Cash Lynn Tolley, Drawing Income Summary Salaries Payable Sales Salaries Expenses		???	???
	Choices to Choose from: Accounts Payable Advertising Expense Cash Income Summary Store Supplies		???	???
	Choices to Choose from: Accumulated Depreciation-Store Equipment Cash Depreciation Expense Income Summary Store Equipment		???	???
	Choices to Choose from: Income Summary Lynn Tolley, Drawing Store Supplies Store Supplies Expenses		???	???
	Choices to Choose from: Accounts Payable Accounts Receivable Cash Merchandise Inventory Miscellaneous Selling Expense		???	???
	Choices to Choose from: Accounts Payable Cash Income Summary Merchandise Inventory Office Salaries Expense		???	???
	Choices to Choose From: Accumulated Depreciation Cash Income Summary Rent Expense Sales		???	???
	Choices to Choose From: Accounts Payable Cash Insurance Expense Prepaid Insurance Store Supplies		???	???
	Choices to Choose From: Accounts Receivable Cash Income Summary Lynn Tolley, Drawing Miscellaneous Administrative Expense		???	???
May 31	Choices to choose from: Cash Income Summary Lynn Tolley, Drawing Sales Discounts Sales Returns and Allowances		???
	Choices to choose from: Accounts Receivable Cash Income Summary Lynn Tolley, Capital Sales			???
May 31	Choices to choose from: Cash Cost of Merchandise Sold Lynn Tolley, Capital Lynn Tolley, Drawing Sales		???
	Choices to choose from: Income Summary Lynn Tolley, Capital Lynn Tolley, Drawing Store Euqipment Store Supplies			???

Comprehensive Problem-Chapter FivCalculator Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2018, are as follows. Assume all accounts have normal balances a $83,600 312 Dividends 233,900 313 Income Summary 624,400410 Sales 110 Cash 112 Accounts Receivable 115 Inventory 116 Estimated Returns Inventory 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment $135,000 28,000 510 Cost of Goods Sold 16,800 520 Sales Salaries Expense 11,400 521 Advertising Expense 5,069,000 2,823,000 664,800 281,000 569,500 522 Depreciation Expense 124 Accumulated Depreciation- Store Equipment 56,700 5 Store Supplies Expense 210 Accounts Payable 211 Salaries Payable 212 Customers Refunds Payable 310 Common Stock 311 Retalned Earnings Part 1: Journalize transactions Part 2: Using are not required to update or post to the accounts May 1: Paid rent for May, $5,000. 96,600 529 Miscellaneous Selling Expense 530 Office Salaries Expense 12,600 382,100 83,700 50,000 531 Rent Expense 100,000 532 Insurance Expense 585,300 539 Miscellaneous Administrative Expense 7,800 the last month of the fiscal year. For a compound transaction, if an amount box does not require an entry, leave it blank. the attached spreadsheet, post the journal entries from Part 1 to the general ledger. Extend the month-end balances to the appropriate balance columns after all posting is completed. In this probiem, yo month receivable and accounts payable subsidlary ledgers Check My Wark Previous Nedt ssignment Score: 54.5% All work saved. Email Instructor Save and Exit Submit Assignment for Gr Comprehensive Problem-Chapter FivCalculator Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2018, are as follows. Assume all accounts have normal balances a $83,600 312 Dividends 233,900 313 Income Summary 624,400410 Sales 110 Cash 112 Accounts Receivable 115 Inventory 116 Estimated Returns Inventory 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment $135,000 28,000 510 Cost of Goods Sold 16,800 520 Sales Salaries Expense 11,400 521 Advertising Expense 5,069,000 2,823,000 664,800 281,000 569,500 522 Depreciation Expense 124 Accumulated Depreciation- Store Equipment 56,700 5 Store Supplies Expense 210 Accounts Payable 211 Salaries Payable 212 Customers Refunds Payable 310 Common Stock 311 Retalned Earnings Part 1: Journalize transactions Part 2: Using are not required to update or post to the accounts May 1: Paid rent for May, $5,000. 96,600 529 Miscellaneous Selling Expense 530 Office Salaries Expense 12,600 382,100 83,700 50,000 531 Rent Expense 100,000 532 Insurance Expense 585,300 539 Miscellaneous Administrative Expense 7,800 the last month of the fiscal year. For a compound transaction, if an amount box does not require an entry, leave it blank. the attached spreadsheet, post the journal entries from Part 1 to the general ledger. Extend the month-end balances to the appropriate balance columns after all posting is completed. In this probiem, yo month receivable and accounts payable subsidlary ledgers Check My Wark Previous Nedt ssignment Score: 54.5% All work saved. Email Instructor Save and Exit Submit Assignment for Gr