Palisade Creek Co$.$ is a merchandising business that uses the perpetual inventory system $($javascript:void$(0)).$ The account balances for Palisade Creek Co$.$ as of May $1,20$Y$7($unless otherwise indicated$),$ are as follows:$110$ Cash $$83,600112$ Accounts Receivable $233,900115$ Merchandise Inventory $652,400117$ Prepaid Insurance $16,800118$ Store Supplies $11,400123$ Store Equipment $569,500124$ Accumulated Depreciation$-$Store Equipment $56,700210$ Accounts Payable $96,600211$ Customer Refunds Payable $50,000212$ Salaries Payable $310$ Lynn Tolley, Capital, June $1,20$Y$6685,300311$ Lynn Tolley, Drawing $135,000410$ Sales $5,069,000510$ Cost of Merchandise Sold $2,823,000520$ Sales Salaries Expense $664,800521$ Advertising Expense $281,000522$ Depreciation Expense $523$ Store Supplies Expense $529$ Miscellaneous Selling Expense $12,600530$ Office Salaries Expense $382,100531$ Rent Expense $83,700532$ Insurance Expense $539$ Miscellaneous Administrative Expense $7,800$During May, the last month of the fiscal year, the following transactions were completed:Record the following transactions on page $20$ of the journal.May$1$Paid rent for May, $$5,000\mathrm{.}3$Purchased merchandise on account from Martin Co$.,$ terms $2/10,$ n$/30,$ FOB shipping point, $$36,000\mathrm{.}4$Paid freight on purchase of May $3,$ $$600\mathrm{.}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\mathrm{.}7$Received $$22,300$ cash from Halstad Co$.$ on account$\mathrm{.}10$Sold merchandise for cash, $$54,000.$ The cost of the merchandise sold was $$32,000\mathrm{.}13$Paid for merchandise purchased on May $3\mathrm{.}15$Paid advertising expense for last half of May, $$11,000\mathrm{.}16$Received cash from sale of May $6\mathrm{.}19$Purchased merchandise for cash, $$18,700\mathrm{.}19$Paid $$33,450$ to Buttons Co$.$ on account$\mathrm{.}20$Paid Korman Co$.$ a cash refund of $$5,000$ for damaged merchandise from sale of May $6.$ Korman Co$.$ kept the merchandise.Record the following transactions on page $21$ of the journal.May$20$Sold merchandise on account to Crescent Co$.,$ terms $1/10,$ n$/30,$ FOB shipping point, $$110,000.$ The cost of the merchandise sold was $$70,000\mathrm{.}21$For the convenience of Crescent Co$.,$ paid freight on sale of May $20,$ $$2,300\mathrm{.}21$Received $$42,900$ cash from Gee Co$.$ on account$\mathrm{.}21$Purchased merchandise on account from Osterman Co$.,$ terms $1/10,$ n$/30,$ FOB destination, $$88,000\mathrm{.}24$Returned damaged merchandise purchased on May $21,$ receiving a credit memo from the seller for $$5,000\mathrm{.}26$Refunded cash on sales made for cash, $$800.$ The defective merchandise was not returned by the customer$\mathrm{.}28$Paid sales salaries of $$56,000$ and office salaries of $$29,000\mathrm{.}29$Purchased store supplies for cash, $$2,400\mathrm{.}30$Sold merchandise on account to Turner Co$.,$ terms $2/10,$ n$/30,$ FOB shipping point, $$78,750.$ The cost of the merchandise sold was $$47,000\mathrm{.}30$Received cash from sale of May $20$ plus freight paid on May $21\mathrm{.}31$Paid for purchase of May $21,$ less return of May $24.$Required:$1.$Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four$-$column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part $1$ of this problem as well as steps in Part $2$ of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.A$.$Enter the May $1$ balances of each of the accounts in the appropriate balance column of a four$-$column account. Enter May $1$ in the date column. Write Balance in the item section, and enter X in the Posting Reference column.B$.$ Journalize the transactions for May, starting on Page $20$ of the journal.$*2.$Post the journal to the general ledger, extending the month$-$end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. Add the appropriate posting reference to the journal$\mathrm{.}3.$Prepare an unadjusted trial balance. Accounts with zero balances can be left blank$\mathrm{.}4.$At the end of May, the following adjustment data were assembled. Analyze and use these data to complete $(5)$ and $(6).$Merchandise inventory on May $31,$ $$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$Office salaries, $$6,600$Total accrued salaries: $$13,600$The adjustment for customer refunds and allowances is $$60,000\mathrm{.}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$\mathrm{.}6.$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$\mathrm{.}7.$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 crediPalisade Creek Co$.$ is a merchandising business that uses the perpetual inventory system $($javascript:void$(0)).$ During May, the last month of the fiscal year, transactions were completed. In Part $1$ of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance.Required:$8.$ If you completed the end$-$of$-$period work sheet in Part $1,$ use the adjusted trial balance figures to prepare an income statement, a statement of owners equity, and a balance sheet. If you didnt complete the end$-$of$-$period work sheet in Part $1,$ use the ledger $($the Excel spreadsheet$)$ to prepare an income statement, a statement of owners equity, and a balance sheet.$*9.$A$.$ Prepare the closing entries. Record the closing entries on Page $23$ of the journal. 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.B$.$ Post the closing entries to the ledger of four$-$column accounts. Add the appropriate posting reference to the journal$\mathrm{.}10.$ Prepare a post$-$closing trial balance. Accounts with zero balances can be left blank.$*$For guidance in completing the financial statements, be sure to read the instructions above each statement carefully.