Instructions Palisade Creek Co ha merchandising business that uses the perpetunt inventory. The account balances for Palisade Creek Co. as of May 1, 2018, are as follows: Assume all counts have normal balances 110 Cash $ 83,600 233,900 112 Accounts receivable 115 624.400 116 Inventory Estimated returns inventory Prepaid insurance 28,000 117 16.800 11,400 118 123 569,500 Store supplies Store equipment Accumulated depreciation-store equipment Accounts payable 124 56,700 210 96,600 211 Call Instructions 211 Salaries payable 212 Customers refunds payable 50,000 310 Common stock 100,000 311 Retained earnings 585,300 312 Dividends 135,000 313 Income summary 410 Sales 5,069,000 510 Cost of goods sold 2,823,000 520 Sales salaries expense 664,800 521 281,000 Advertising expense Depreciation expense 522 523 Store supplies expense 529 Miscellaneous selling expense 12,600 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Instructions 529 Miscellaneous selling expense 12,600 530 Office salaries expense 382.100 531 Rent expense 83,700 532 Insurance expense 539 Miscellaneous administrative expense 7,800 During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on page 20 of the journal. Refer to the Chart of Accounts for exact wording of account titles. May 1 3 Paid rent for May, $5,000. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point. $36,000. Paid freight on purchase of May 3, $600. 4 Coldmocnhandienonnenunti varmna ca am aonan COD chinninn.noint. This sont 9 May 6 Cost of Goods Sold 510 41,000.00 nprehensive Problem 2, Part 1 nstructions Chart of Accounts Journal Ledger Unadjusted Trial Balance tructions 4+ rald eight on purchase or may 3, sovu. 6 7 10 13 15 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the goods sold was $41,000. Received $22,300 cash from Halstad Co. on account Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000 Paid for merchandise purchased on May 3. Paid advertising expense for last half of May, $11,000. Received cash from sale of May 6. Purchased merchandise for cash, $18,700. Paid $33,450 to Buttons Co. on account. Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000. 16 19 19 20 May 6 Cost of Goods Sold 510 41,000.00 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Instructions Record the following transactions on page 21 of the journal. Refer to the Chart of Accounts for exact wording of account titles. May 20 21 21 21 24 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the goods sold was $70,000. For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. Received $42,900 cash from Gee Co. on account. Purchased merchandise on account from Osterman Co., terms 1/10, 1/30, FOB destination, $88,000. Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. Paid sales salaries of $56,000 and office salaries of $29,000. Purchased store supplies for cash, $2,400. Sold merchandise on account to Turner Co., terms 2/10,n/30, FOB shipping point, $78,750. The cost of the goods sold was $47.000, 26 28 29 30 9 May 6 Cost of Goods Sold 510 41,000.00 omprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance instructions 30 the goods sold was $47,000. Received cash from sale of May 20 plus freight paid on May 21. Paid for purchase of May 21, less return of May 24. 31 Required: 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the date column. Write Balance in the item section, and enter "X" in the Posting Reference column. B. Journalize the transactions for May, starting on Page 20 of the journal." 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In May 6 Cost of Goods Sold 510 41,000.00 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Instructions 3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). A. Inventory on May 31, S570,000 B. Insurance expired during the year, $12,000 C. Store supplies on hand on May 31, S4,000 D. Depreciation for the current year. $14,000 E. Accrued salaries on May 31: Sales salaries, $7.000 Office salaries, $6,600 Total accrued salaries: $13,600 F. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold. 5. (Optional) on your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. May 6 Cost of Goods Sold 510 41,000.00 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Instructions Journal SI JOURNAL Score: 3577406 ACCC DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS 1 531 5,000.00 May 1 Rent Expense Cash 2 110 5,000.00 3 May 3 Inventory 115 36,000.00 1 4 Accounts Payable 210 36,000.00 5 115 600.00 May 4 Inventory Cash > 6 110 600.00 7 May 6 Accounts Receivable 112 68,500.00 8 Sales 410 68,500.00 3 May 6 Cost of Goods Sold 510 41,000.00 20 Inventory 115 41,000.00 My Work Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Instructions Journal 16 115 32,000.00 Inventory May 13 Accounts Payable 17 210 36,000.00 18 Inventory 115 720.00 19 Cash 110 35,280.00 20 521 11,000.00 May 15 Advertising Expense Cash > 21 110 11,000.00 22 May 16 Cash 110 67,130.00 23 529 1,370.00 > 24 112 68,500.00 Miscellaneous Selling Expense Accounts Receivable May 19 Inventory Cash 25 115 18,700.00 26 110 18,700.00 Mo Gumbakunde Dubla 12 My Work Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Instructions Journal 28 tasi NU 115,250.00 29 115 8,000.00 1 May 20 Inventory Cost of Goods Sold 30 510 8,000.00 Point How does grading work? JOURNAL Score: 335/392 AC DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS 1 May 20 Accounts Receivable 112 110,000.00 2 Sales 410 110,000.00 k My Work prehensive Problem 2, Part 1 metructions Chart of Accounts Journal Ledger Unadjusted Trial Balance E ructions mal Shaded cells have feedback Accounts Receivable 112 42,900.00 115 88,000.00 1 210 88,000.00 210 May 21 Inventory Accounts Payable May 26 Accounts Payable Estimated Returns Inventory May 26" Miscellaneous Selling Expense Cash 5,000.00 116 5,000.00 + 529 7,500.00 110 7,500.00 + Inventory 115 4,800.00 1 Cost of Goods Sold 510 4,800.00 520 May 28 Sales Salaries Expense Office Salaries Expense 56,000.00 530 29,000,00 Vork structions Chart of Accounts Journal Ledger Unadjusted Trial Balance uctions nal ESMI Sh 85,000.00 May 29 523 Store Supplies Expense Cash 2,400.00 110 2,400.00 510 47,000.00 May 30 Cost of Goods Sold Inventory 115 47,000.00 May 30 Accounts Receivable 112 125,750.00 Sales 410 125,750.00 May 30 Cash 110 111,200.00 Accounts Receivable 112 111,200.00 May 24 Accounts Payable 210 5,000.00 Inventory 115 5,000.00 May 31 Inventory 115 82,170.00 Vork Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Instructions Journal Shaded cells have feedback Question not attempted. PAGE 22 JOURNAL Score: 0/203 ACCOUNTING EQUATION DATE POST, RER DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 DESCRIPTION Adjusting Entries I 5 7 neck My Work Journal Unadjusted Trial Balance Palisade Creek Co. Score: 79/91 UNADJUSTED TRIAL BALANCE May 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 84,500.00 2 Accounts Receivable 233,900.00 3 Inventory 583,950.00 4 Estimated Returns Inventory 28,000.00 5 Prepaid Insurance 16,800.00 13,800.00 6 Store Supplies 7 Store Equipment 569,500.00 8 Accumulated Depreciation Store Equipment 56,700.00 Instructions Journal Unadjusted Trial Balance 8 Accumulated Depreciation Store Equipment 9 Accounts Payable 56,700.00 63,150.00 50,000.00 10 Salaries Payable 11 Customers Refunds Payable 12 Common Stock 13 Retained Earnings 14 Dividends 100,000.00 I 585,300.00 135,000.00 15 Sales 5,069,000.00 2,823,000.00 16 Cost of Goods Sold 17 Sales Salaries Expense 18 Advertising Expense 720,800.00 292,000.00 19 Depreciation Expense Instructions Journal Unadjusted Trial Balance TUOVO 292,000.00 18 Advertising Expense 19 Depreciation Expense 20 Store Supplies Expense 21 Miscellaneous Selling Expense 22 Office Salaries Expense 12,600.00 411,100.00 23 Rent Expense 88,700.00 24 Insurance Expense 25 Miscellaneous Administrative Expense 7,800.00 26 Totals 6,214,400.00 6,214,400.00 Points: 19.97/23