Palisade Creek Co. Income Statement For the Year Ended May 31, 2016 $s 5,376,205 Sales 3,013,000 Cost of goods sold $ 2,363,205 Gross profit $$ 727,800 9,800 Operating Expenses: Selling expenses: Sales salaries expense Advertising expense Depreciation expense Store supplies expense Miscellaneous selling expense 1,400 12,600 292,000 $$ 1,043,600 Total selling expenses Administrative expenses: office salaries expense $$ 417,700 Rent expense 88,700 12,000 Insurance expense 7,800 Miscellaneous administrative expense 526,200 Total administrative expenses 1,569,800 Total operating expenses SS 793,405 Net Income 2. Prepare a statement of stockholders equity. Assume that additional common stock of $10,000 was issued in January 2016. Palisade Creek Co. Statement of Stockholders Equity For the Year Ended May 31, 2016 Common Stock Retained Earnings Total Balances, June 1, 2015 $$ SS S Net income 5 Dividends Issued common stock ss 5$ SS Balances, May 31, 2016 3. Prepare a balance sheet. Palisade Creek Co. Balance Sheet May 31, 2016 Assets Current assets: SS 84,500 Cash 245,875 Accounts receivable 583,950 Inventory 4,800 Prepaid insurance Store supplies 4,000 55 923, 125 Total current assets 3. Prepare a balance sheet. Palisade Creek Co. Balance Sheet May 31, 2016 Assets Current assets: Cash Ss 84,500 Accounts receivable 245,875 Inventory 583,950 Prepaid insurance 4,800 Store supplies 4,000 Total current assets Ss 923,125 55 569,500 Property, plant, and equipment: Store equipment Accumulated depreciation-store equipment Total property, plant, and equipment -58,100 511,400 Total assets SS 1,434,525 Liabilities 55 63,150 Current liabilities: Accounts payable Salaries payable Customers refunds payable Total liabilities 29,270 13,600 106,020 "PUUU 245,875 Accounts receivable Inventory 583,950 4,800 Prepaid insurance Store supplies 4,000 923,125 Total current assets Property, plant, and equipment: Store equipment Accumulated depreciation-store equipment $$ 569,500 -58,100 511,400 Total property, plant, and equipment SS Total assets 1,434,525 Liabilities 63,150 Current liabilities: Accounts payable Salaries payable Customers refunds payable 29,270 13,600 Total liabilities 106,020 Stockholders' Equity 55 Common stock 100,000 1,228,505 S 1,328,505 Retained earnings Total stockholders' equity Total liabilities and Stockholders Equity SS 1,434,525