Instructions Palisade Creek Co. is a merchandising business that uses the parental inventory.stem. 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 115 Merchandise Inventory 233,900 652,400 117 Prepaid insurance 16,500 118 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 50,000 212 Salanes Payable 310 Lynn Tolley, Capital, June 1, 2016 635300 311 Lynn Tolley, Drawing 135.000 410 Sales 5009,000 510 Cost of Merchandise Sold 2,823,000 520 Sales Salanes Expense 664,800 521 Advertising Expense 281,000 522 Deprecation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12.600 530 Office Salanes Expense 382.100 83,700 531 Rent Expense 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 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. 4 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 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. 13 Paid for merchandise purchased on May 3. 15 Paid advertising expense for last half of May, $11,000. 16 19 19 20 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 $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 20 May 20 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 21 21 Received $42,900 cash from Gee Co. on account. Instructions Record the following transactions on page 21 of the journal. May 20 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 21 For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. 21 Received $42,900 cash from Gee Co. on account. 21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. 24 26 26 28 222 29 30 Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Refunded cash on sales made for cash, $800. 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. 21 Paid for Durchase of May 21, less return of May 24. Instructions 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 Cengage NOW 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 (3) and (6) Merchandise inventory on May 31, $565,200 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 Office salanes, $6,600 Total accrued salaries $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 i complete the spreadsheet Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded fumatize the sting entries. Record the adjusting entries on Page 22 of the journal 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 titles 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 Shaded cells have feedback. instructions Journal 1. B. Journalize the transactions for May, starting on Page 20 of the journal 2. Add the appropriate posting reference to the journal 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal. 6. B. Add the appropriate posting reference to the journal "Refer to the chart of accounts for the exact wording of the account tries 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 Re Note: Scroll down for pages 21 and 22 of the journal How does grading work? DATE 1 2 3 May 1 Rent Expense Cash May 3 Merchandise Inventory Accounts Payable May 4 Merchandise Inventory Cash May 6 Accounts Receivable Sales DESCRIPTION PAGE 20 JOURNAL Score: 313/379 ACCOUNTING EQUATION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 5,000.00 5,000.00 4 36,000.00 T 36,000.00 600.00 T 600.00 68.500.00 T 68.500.00 Journal All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. DATE 1 May 20 customer refund payable JOURNAL DESCRIPTION Score: 121/365 POST REF DENT CREDIT 5,000.00 Shaded cells have feedback. PAGE 21 ACCOUNTING EQUATION ASSETS LIABILITIES Re 2 Cash 3 May 20 Merchandise Inventory 4 estimated returns inventory 5,000.00 I May 20 Accounts Receivable 110,000.00 Sales 110,000.00 7 May 20 Cost of Merchandise Sold 70,000.00 Merchandise Inventory 70,000.00 May 21 Accounts Receivable 2.300.00 10 Cash 23.000.00 11 May 21 Cash 42.900.00 T 22 Accounts Receivable 42.900.00 == 15 16 EQUITY Instructions Journal Re All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. Shaded cells have feedback PAGE 22 ACCOUNTING EQUATION JOURNAL Score: 0/176 DATE DESCRIPTION POST REF DELT CREDIT ASSETS 1 Adjusting Entries 2 May 1 7 " 10 11 32 15 134 LIABILITIES EQUITY Points 0/45