Instructions Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co as of May 1, 2017 (unless otherwise indicated), are as follows: 110 Cash $83,600 112 Accounts Receivable 233,900 115 Merchandise Inventory 652,400 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 123 Store Equipment 569,500 124 Accumulated Depreciation Store Equipment 56,700 210 Accounts Payable 96,600 211 Customer Refunds Payable 50,000 2121 Salanes Payable 310 Lynn Tolley, Capital, June 1, 2016 685,300 311 Lynn Tolley, Drawing 135,000 410 Sales 5,069,000 510 Cost of Merchandise Sold 2,823,000 520 Sales Salaries Expense 664,800 521 Advertising Expense 281,000 522 Depreciation Expense 523 Store Supplies Expense 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 May 1 Paid rent for May, $5,000. 3 4 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 6 Sold merchandise on account to Korman Co, terms 2/10, n/30, FOB shipping point, $68.500. The cost of the merchandise sold was $41,000 7 Received $22,300 cash from Halstad Co on account 10 15 2229 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000 13 Paid for merchandise purchased on May 3 Paid advertising expense for last half of May, $11,000 16 Received cash from sale of May 6 16 Received cash from sale of May 6 19 Purchased merchandise for cash, $18,700. 19 Paid $33,450 to Buttons Co on account 20 20 Paid Korman Co. a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co kept the merchandise. Record the following transactions on page 21 of the journal May 20 20 21 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000 For the convenience of Crescent Co, paid freight on sale of May 20, $2,300 D 21 Received $42,900 cash from Gee Co. on account 21. 24 Purchased merchandise on account from Osterman Co, terms 1/10, n/30, FOB destination, $88,000 Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000 26 26 28 29 30 Refunded cash on sales made for cash, $300. The defective merchandise was not returned by the customer 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 merchandise sold was $47,000 30 Received cash from sale of May 20 plus freight paid on May 21. 31 Paid for purchase of May 21, less return of May 24 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. White 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 this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. Add the appropriate posting reference to the journal 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) Merchandise inventory on May 31, $585,200 insurance expired during the year, $12,000 Store supplies on hand on May 31, $4,000 Depreciation for the current year, $14,000 Accrued salaries on May 31 Sales salaries $7,000 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) Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, $4,000 Depreciation for the current year, $14,000 Accrued salaries on May 31 Sales salanes, $7,000 Office salaries, $6,600 Total accrued salanes: $13,600 The adjustment for customer refunds and allowances is $60,000 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 Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal B. Post the adjusting entries. Add the appropriate posting reference to the journal 7. Prepare an adjusted trial balance Accounts with zero balances can be left blank "Refer to the chart of accounts for the exact wording of the account tities CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered