Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. 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 exact wording of account titles.
	B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal.

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.

turns Inventory
117	Prepaid Insurance
118	Store Supplies
123	Store Equipment
124	Accumulated Depreciation-Store Equipment

	LIABILITIES
210	Accounts Payable
211	Customers Refunds Payable
212	Salaries Payable

	EQUITY
310	Lynn Tolley, Capital
311	Lynn Tolley, Drawing

	REVENUE
410	Sales

	EXPENSES
510	Cost of Merchandise Sold
520	Sales Salaries Expense
521	Advertising Expense
522	Depreciation Expense
523	Store Supplies Expense
529	Miscellaneous Selling Expense
530	Office Salaries Expense
531	Rent Expense
532	Insurance Expense
539	Miscellaneous Administrative Expense

X

Labels and Amount Descriptions

Labels
Administrative expenses
Current assets
Current liabilities
For the Year Ended May 31, 2019
Long-term liabilities
May 31, 2019
Expenses
Other income and expense
Property, plant, and equipment
Selling expenses
Amount Descriptions
Add withdrawals
Cost of merchandise purchased
Gross profit
Income from operations
Increase in owners equity
Lynn Tolley, capital, June 1, 2018
Lynn Tolley, capital, May 31, 2019
Withdrawals
Merchandise available for sale
Net income
Net income for the year
Net loss
Net purchases
Total administrative expenses
Total assets
Total current assets
Total current liabilities
Total liabilities
Total liabilities and owners equity
Total Expenses
Total property, plant, and equipment
Total selling expenses