Instructions Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisado Creek Co. as of May 1, 2018, are as follows: Assume all accounts have normal balances 110 Cash $ 83,600 112 Accounts receivable 233,900 115 624,400 116 28,000 117 16.800 118 11,400 123 569,500 124 Inventory Estimated returns inventory Prepaid insurance Store supplies Store equipment Accumulated depreciation-store equipment Accounts payable Salaries payable Customers refunds payable Common stock Retained earnings Dividends 56,700 210 96,600 211 212 50.000 310 100.000 311 585,300 312 135,000 313 Income summary Sales 410 5,069,000 510 2,823,000 Cost of goods sold Sales salaries expense 520 664,800 Check My Work ament Score: 83.84% All work saved SU UCHUN 521 281.000 522 523 529 12,600 Advertising expense Depreciation expense Store supplies expense Miscellaneous selling expense Office salaries expense Rent expense Insurance expense Miscellaneous administrative expense 530 382, 100 531 83,700 532 539 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 4 6 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. 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. 7 10 13 15 Instructions 15 16 Paid advertising expense for last half of May, $11,000. Received cash from sale of May 6. Purchased merchandise for cash, $18,700. 19 19 Paid $33,450 to Buttons Co. on account. 20 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. 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, 1/30, FOB shipping point, $78.750. The cost of the goods sold was $47,000. 26 28 29 30 Instructions 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 stops 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. 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, $570,000 B. Insurance expired during the year, $12,000 C. Store supplies on hand on May 31, $4,000 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 Journal Shaded cells DATE DESCRIPTION POST. REF. CREDIT ASSETS LIABILITIES EG DEBIT 5,000.00 1 May 1 Rent Expense 2 Cash 5,000.00 1 3 96,600.00 1 4 May 3. Inventory Accounts Payable May 4 Inventory 96,600.00 5 600.00 1 6 Cash 600.00 + 7 May 6 Accounts Receivable 68,500.00 t Sales 68,500.00 f 9 May 6 Cost of Goods Sold 41,000.00 1 10 Inventory May 7 Cash 41,000.00 1 11 22,300.00 Check My Work gnment Score: 83.84% All work saved. nal Shaded cells 41,000.00 May 6 Cost of Goods Sold Inventory May 7 Cash 41,000.00 22,300.00 Accounts Receivable 22,300.00 + May 10 Cash 54,000.00 t Sales 54,000.00 1 May 10 Cost of Goods Sold 32,000.00 32,000.00 Inventory May 13 Accounts Payable Cash 35,280.00 35,280.00 1 Cash 720.00 1 May 15 Advertising Expense 11,000.00 * My Work at Score: 83.84% UIT Sud CONIS have e May 15 Advertising Expense 11,000.00 Cash 11,000.00 1 67,130.00 May 16 Cash Income Summary 1,370,00 Accounts Receivable 67,130.00 1 5 May 19 Inventory Cash 18,700.00 1 26 18,700,00 + May 19 Accounts Payable 33,450.00 20 Cash > 33,450.00 1 29 May 20 Inventory Cost of Goods Sold 8,000.00 1 30 8,000.00 t ck My Work ant Score: 83.84% All work saved. Email Journal Shaded cells have focs 1 May 21 Accounts Receivable 2,300.00 + 2 Cash 2,300.00 1 May Cash 42,900.00 + 4 Accounts Receivable 42,900.00 1 5 88,000.00 6 88,000.00 7 May 21 Inventory Accounts Payable May 24 Accounts Payable Inventory May 26 Sales 5,000.00 1 5,000.00 7,500.00 10 7,500.00 May 26 Inventory Cost of Goods Sold 4,800.00 1 12 4.800.00 Check My Work gnment Score: 83.84% All work saved. Email Instru Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Journal od cells have feed 15 56,000.00 1 14 29,000.00 15 May 28 Sales Salaries Expense Office Salaries Expense Cash May 29 Store Supplies Expense Cash 85,000.00 1 16 2,400.00 1 2,400.00 + 1: May 30 Accounts Receivable > 78,750.00 Sales 78,750.00 + 20 May 30 Cost of Goods Sold 47,000.00 1 21 Inventory 47,000.00 1 22 May 30 Cash 111,200.00 25 Sales 1,100.00 1 Accounts Receivable 112 000 eck My Work Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Journal Shaded cells have fee TONU 22 May 30 Cash 111,200.00 25 Sales 1,100.00 24 Accounts Receivable 112,300.00 25 May 31 Accounts Payable Salaries Payable 12,000.00 26 12,000.00 t 22 Inventory 1,400.00 830.00 20 Cash 14,000.00 1 29 insurance Points: 73.17 /101 Check My Work