Palisade Creek Co is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2018, are as follows: Assume all accounts have nomal balances. $ 83,600 110 Cash 233.900 Accounts receivable 112 624 400 Inventory 115 28.000 Estimated returns inventory 116 16,800 117 Prepaid insurance 11,400 Store supplies 118 569 500 123 Store equipment 56.700 Accumulated depreciation-store equipment 124 ne enn Aonesmto bie 250. InstrucioAS 56,700 Accumulated depreciation-store equipment 124 96,600 Accounts payable 210 Salaries payable 211 50,000 212 Customers refunds payable 100.000 Common stock 310 585,300 Retained eanings 311 135,000 Dividends 312 Income summary 313 5,069,000 Sales 410 2,823,000 Cost of goods sold 510 664 800 Sales salaries expense 520 281,000 Advertising expense 521 664,800 520 Sales salaries expense 281,000 Advertising expense 521 Depreciation expense 522 523 Store supplies expense 12,600 Miscellaneous selling expense 529 382,100 530 Office salaries expense 83,700 Rent expense 531 532 Insurance expense 7,800 Miscellaneous administrative expense 539 During May, the last month of the fiscal year, the following transactions were completed Dannt the inuing transactions.on.nage 20.of the inurmal Reter to the Chart nt Acrnunts for exact wnming.of account.tities 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 Paid rent for May, $5,000 May Purthased merchandise on account from Martin Co, tems 2/10, n/30, FOB shipping point, $36,000 Paid freight on purchase of May 3, $600. Sold merchandise on account to Korman Co, terms 2/10, n/30, FOB shipping point, $68,500 The cost of the goods sold was $41.000 Received $22,300 cash from Halstad Co. on account 7 Sold merchandise for cash, $54 000 The cost of the goods sold was $32,000 10 Paid for merchandise purchased on May 3 13 Instructions Sold merchandise for cash, $54.000. The cost of the goods sold was $32.000 10 Paid for merchandise purchased on May 3. 13 Paid advertising expense for last half of May, $11,000. 15 Received cash from sale of May 6 16 Purchased merchandise for cash, $18,700 19 Paid $33,450 to Buttons Co. on account 19 Paid Korman Co. a cash r refund of $13.230 for retumed merchandise from sale of May 6. The invoice 20 amount of the returned merchandise was $13.500 and the cost of the returned merchandise was $8,000 Record the folowing transactions on page 21 of the journal Refer to the Chart of Accounts for exact wording of account titles Record the folowing transactions on page 21 of the journal. Refer to the Chart of Accounts for exact wording of account neles Sold merchandise on account to Crescent Co terms 1/10, n/30, FOB shipping point, $110,000. The 20 May -cost of the goods sold was $70.000 For the convenience of Crescent Co., paid freight on sale of May 20, $2.300 21 Received $42,900 cash from Gee Co on account 21 Purchased merchandise on account from Osterman Co, tems 1/10, n/30, FOB destination, $88,000 21 Returned of damaged merchandse purchased on May 21, receiving a credit memo from the seller for 24 $5,000. Refunded cash on sales made for cash $7.500 The cost of the merchandise returned was $4.800 26 Paid sales salaries of $56.000 and office salaries of $29 000 28 4no benndtore.oumnen toe mh 28 Paid sales salaries of $56,000 and office salaries of $29,000. 29 Purchased store supplies for cash, $2,400. 30 Sold merchandise on account to Tumer Co, terms 2/10, n30, FOB shipping point, $78,750. The cost of the goods sold was $47,000 Received cash from sale of May 20 plus treight paid on May 21 30 Paid for purchase of May 21, less return of May 24 31 7. Prepare an adjusted trial balance Accounts with zero balances can be left blank Palisade Creek Co. ADJUSTED TRIAL BALANCE May 31, 2018 CREDIT DEBIT ACCOUNT TITLE 1 Cash 2Accounts Receivable SInventory 4 Estimated Returns Inventory s Prepaid Insurance Journal 1. B. Journalize the transactions for May, starting on Page 20 of the journal. 2. Add the appropriate posting reference to the journal A Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal 6. B. Add the appropriate posting reference to the journal 6 Refer to the Chart of Accounts for exact wording of account titles Scroll down for pages 21 through 22 of the journal PAGE 20 Required: 8. if you compieted the end-of-period work sheet in Part 1, use the adiusted trial balance fiqures to prepare an income statement, a retained earnings statement, and a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a retained eamings statement, and a balance sheet 9 A Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer lo the Chart of Accounts for exact wording of account ttes 9 B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal Insert the new balance in the retained earnings account. 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 carefuly CHART OF ACCOUNTS Palisade Creek Co. General Ledger REVENUE ASSETS 410 Sales 110 Cash 112 Accounts Receivable EXPENSES 115 Inventory 510 Cost of Goods Sold 116 Estimated Returns Inventory 520 Sales Salaries Expense 117 Prepaid Insurance 521 Advertisina Fxnense 112 Stora Sonnlie Expse 520 Sales S 117 Prepaid Insurance 521 Advertising Expense 118 Store Supplies 522 Depreciation Expense 123 Store Equipment 523 Store Supplies Expense 124 Accumulated Depreciation-Store Equipment 529 Miscellaneous Seling Expense 530 Office Salaries Expense LIABILITIES 531 Rent Expense 210 Accounts Payable 532 Insurance Expense 211 Salaries Payable 539 Miscellaneous Administrative Expense 212 Customers Refunds Payable EQUITY 310 Common Stock 3u Omce Sdidl es Experse LIABILITIES 210 Accounts Payable 531 Rent Expense 211 Salaries Payable 532 Insurance Expense 539 Miscellaneous Administrative Expense 212 Customers Refunds Payable EQUITY 310 Common Stock 311 Retained Eamings 312 Dividends 313 Income Summary Shadeg cens nave teedpack Journal 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 9 A ttles 9 B. Add the appropriate posting reference to the journal How does grading work? PAGE 23 ACCOUNTING EQUATION Score: 72/226 JOURNAL POST REF LIADILITIES tquITY DEBIT CREDIT ASSETS DATE DESCRIPTION Closing Entries Rent Expense 531 83,700.00 7