Palisade Creek Co is a merchandising business that uses the perpetual inventory system The account balances for Palisade Creek Co as of May 1, 2019 (unless otherwise indicated), are as follows 110 Cash $ 83,600 112 Accounts Receivable 233,900 115 Merchandise Inventory 624,400 116 Estimated Returns Inventory 28,000 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 123 Store Equipment 569,500 124 Accumulated Depreciation Store Equipment 56,700 210 Accounts Payable 96,600 211 Customers Refunds Payable 50,000 212 Salaries Payable 310 Lynn Tolley, Capital, June 1, 2018 685,300 311 Lynn Tolley, Drawing 135,000 410 Sales 5,069,000 510 Cost of Merchandise Sold 2,823,000 520 Sales Salaries Expense 664,800 521 Advertising Expense 281,000 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12,600 530 Office Salaries Expense 382,100 531 Rent Expense 83,700 532 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 Refer to the Chart of Accounts for exact wording of account titles may 1 Paid rent for May, $5,000 may 3 Purchased merchandise on account from Martin Co , terms 2 10, n 30, FOB shipping point, $36,000 may 4 Paid freight on purchase of May 3, $600 may 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 may 7 Received $22,300 cash from Halstad Co on account may 10 Sold merchandise for cash, $54,000 The cost of the merchandise sold was $32,000 may 13 Paid for merchandise purchased on May 3 may 15 Paid advertising expense for last half of May, $11,000 may 16 Received cash from sale of May 6 may 19 Purchased merchandise for cash, $18,700 may 19 Paid $33,450 to Buttons Co on account may 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 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 may 21 For the convenience of Crescent Co , paid freight on sale of May 20, $2,300 may 21 Received $42,900 cash from Gee Co on account may 21 Purchased merchandise on account from Osterman Co , terms 1 10, n 30, FOB destination, $88,000 may 24 Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000 may 26 Refunded cash on sales made for cash, $7,500 The cost of the merchandise returned was $4,800 may 28 Paid sales salaries of $56,000 and office salaries of $29,000 may 29 Purchased store supplies for cash, $2,400 may 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 may 30 Received cash from sale of May 20 plus freight paid on May 21 may 31 Paid for purchase of May 21, less return of May 24 3 Prepare an unadjusted trial balance Accounts with zero balances can be left blank account tilte debit credit cash accounts receivable Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation Store Equipment Accounts Payable Customers Refunds Payable Salaries Payable Lynn Tolley, Capital Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense Totals 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, $570,000 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 returns and allowances is $60,000 for sales and $35,000 for cost of merchandise sold 6 A Journalize the adjusting entries Record the adjusting entries on Page 22 of the journal B Post the adjusting entries Prepare an adjusted trial balance Accounts with zero balances can be left blank account title debit credit cash Accounts Receivable Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation Store Equipment Accounts Payable Customers Refunds Payable Salaries Payable Lynn Tolley, Capital Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense Totals prepare an income statement, a statement of owners equity, and a balance sheet

Question

Palisade Creek Co  is a merchandising business that uses the perpetual inventory system  The account balances for Palisade Creek Co  as of May 1, 2019 (unless otherwise indicated), are as follows  110 Cash $ 83,600 112 Accounts Receivable 233,900 115 Merchandise Inventory 624,400 116 Estimated Returns Inventory 28,000 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 123 Store Equipment 569,500 124 Accumulated Depreciation Store Equipment 56,700 210 Accounts Payable 96,600 211 Customers Refunds Payable 50,000 212 Salaries Payable 310 Lynn Tolley, Capital, June 1, 2018 685,300 311 Lynn Tolley, Drawing 135,000 410 Sales 5,069,000 510 Cost of Merchandise Sold 2,823,000 520 Sales Salaries Expense 664,800 521 Advertising Expense 281,000 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12,600 530 Office Salaries Expense 382,100 531 Rent Expense 83,700 532 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   Refer to the Chart of Accounts for exact wording of account titles  may 1 Paid rent for May, $5,000  may 3 Purchased merchandise on account from Martin Co , terms 2 10, n 30, FOB shipping point, $36,000  may 4 Paid freight on purchase of May 3, $600  may 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  may 7 Received $22,300 cash from Halstad Co  on account  may 10 Sold merchandise for cash, $54,000  The cost of the merchandise sold was $32,000  may 13 Paid for merchandise purchased on May 3  may 15 Paid advertising expense for last half of May, $11,000  may 16 Received cash from sale of May 6  may 19 Purchased merchandise for cash, $18,700  may 19 Paid $33,450 to Buttons Co  on account  may 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 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  may 21 For the convenience of Crescent Co , paid freight on sale of May 20, $2,300  may 21 Received $42,900 cash from Gee Co  on account  may 21 Purchased merchandise on account from Osterman Co , terms 1 10, n 30, FOB destination, $88,000  may 24 Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000  may 26 Refunded cash on sales made for cash, $7,500  The cost of the merchandise returned was $4,800  may 28 Paid sales salaries of $56,000 and office salaries of $29,000  may 29 Purchased store supplies for cash, $2,400  may 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  may 30 Received cash from sale of May 20 plus freight paid on May 21  may 31 Paid for purchase of May 21, less return of May 24  3  Prepare an unadjusted trial balance   Accounts with zero balances can be left blank  account tilte debit credit cash accounts receivable Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation Store Equipment Accounts Payable Customers Refunds Payable Salaries Payable Lynn Tolley, Capital Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense Totals 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, $570,000 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 returns and allowances is $60,000 for sales and $35,000 for cost of merchandise sold  6  A  Journalize the adjusting entries  Record the adjusting entries on Page 22 of the journal   B  Post the adjusting entries  Prepare an adjusted trial balance  Accounts with zero balances can be left blank  account title debit credit cash Accounts Receivable Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation Store Equipment Accounts Payable Customers Refunds Payable Salaries Payable Lynn Tolley, Capital Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense Totals prepare an income statement, a statement of owners equity, and a balance sheet

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Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019

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