Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2018, are as follows. Assume all accounts have normal balances.

110Cash$83,600312Dividends$135,000112Accounts Receivable233,900313Income Summary115Inventory624,400410Sales5,069,000116Estimated Returns Inventory28,000510Cost of Goods Sold2,823,000117Prepaid Insurance16,800520Sales Salaries Expense664,800118Store Supplies11,400521Advertising Expense281,000123Store Equipment569,500522Depreciation Expense124Accumulated Depreciation Store Equipment56,700523Store Supplies Expense210Accounts Payable96,600529Miscellaneous Selling Expense12,600211Salaries Payable530Office Salaries Expense382,100212Customers Refunds Payable50,000531Rent Expense83,700310Common Stock100,000532Insurance Expense311Retained Earnings585,300539Miscellaneous Administrative Expense7,800Part 1: Journalize the transactions below for May, the last month of the fiscal year. For a compound transaction, if an amount box does not require an entry, leave it blank.

Part 2: Using the attached spreadsheet, post the journal entries from Part 1 to the general ledger. Extend 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.

Part 3: Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank.

Part 4.At the end of May, the following adjustment data were assembled. Analyze and use these data to complete Part 6.

a.Inventory on May 31$570,000b.Insurance expired during the year12,000c.Store supplies on hand on May 314,000d.Depreciation for the current year14,000e.Accrued salaries on May 31:Sales salaries$7,000Office salaries6,60013,600f. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold.

Part 6. Journalize the adjusting entries. For a compound transaction, if an amount box does not require an entry, leave it blank. Post the adjusting entries to the attached spreadsheet you used in parts 1 and 2.

Part.7:Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank.

Part 8:Prepare a multiple-step income statement.

Part.9: Journalize the closing entries. Then post the journal to the general ledger you created in part 1. Indicate closed accounts by inserting a line in both the balance columns opposite the closing entry. Insert the new balance in the retained earnings account.

If an amount box does not require an entry, leave it blank

Part 10;Prepare a post-closing trial balance. If an amount box does not require an entry, leave it blank.