Palisade Creek Co is a merchandising business that uses the perpetual inventory system The account balances for Palisade Creek Co as of May 1, 2017, are as follows Assume all accounts have normal balances 110 Cash $ 83,600 112 Accounts receivable 233,900 115 Inventory 652,400 117 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 Salaries payable 212 Customers refunds payable 50,000 310 Lynn Tolley, Capital, June 1, 20Y6 685,300 311 Lynn Tolley, Drawing 135,000 410 Sales 5,069,000 510 Cost of goods 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 3 Purchased merchandise on account from Martin Co , terms 2 10, n 30, FOB shipping point, $36,000 4 Paid freight on purchase of May 3, $600 6 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 7 Received $22,300 cash from Halstad Co on account 10 Sold merchandise for cash, $54,000 The cost of the goods sold was $32,000 13 Paid for merchandise purchased on May 3 15 Paid advertising expense for last half of May, $11,000 16 Received cash from sale of May 6 19 Purchased merchandise for cash, $18,700 19 Paid $33,450 to Buttons Co on account 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 goods sold was $70,000 21 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 , terms 1 10, n 30, FOB destination, $88,000 24 Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000 26 Refunded cash on sales made for cash, $7,500 The cost of the merchandise returned was $4,800 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 Turner Co , terms 2 10, n 30, FOB shipping point, $78,750 The cost of the goods sold was $47,000 30 Received cash from sale of May 20 plus freight paid on May 21 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 4 At the end of May, the following adjustment data were assembled Analyze and use these data to complete (5) and (6) A Inventory on May 31, $570,000 B Insurance expired during the year, $12,000 C Store supplies on hand on May 31, $4,000 D Depreciation for the current year, $14,000 E Accrued salaries on May 31 Sales salaries, $7,000 Office salaries, $6,600 Total accrued salaries $13,600 F The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold 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 6 A Journalize the adjusting entries Record the adjusting entries on Page 22 of the journal B Post the adjusting entries 7 Prepare an adjusted trial balance Accounts with zero balances can be left blank Refer to the Chart of Accounts for exact wording of account titles

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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, 2017,

Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2017, are as follows: Assume all accounts have normal balances.

110

Cash

$ 83,600

112

Accounts receivable

233,900

115

Inventory

652,400

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

Salaries payable

212

Customers refunds payable

50,000

310

Lynn Tolley, Capital, June 1, 20Y6

685,300

311

Lynn Tolley, Drawing

135,000

410

Sales

5,069,000

510

Cost of goods 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.
	3	Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
	4	Paid freight on purchase of May 3, $600.
	6	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.
	7	Received $22,300 cash from Halstad Co. on account.
	10	Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000.
	13	Paid for merchandise purchased on May 3.
	15	Paid advertising expense for last half of May, $11,000.
	16	Received cash from sale of May 6.
	19	Purchased merchandise for cash, $18,700.
	19	Paid $33,450 to Buttons Co. on account.
	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

Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the goods sold was $70,000.

For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.

Received $42,900 cash from Gee Co. on account.

Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.

Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.

Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800.

Paid sales salaries of $56,000 and office salaries of $29,000.

Purchased store supplies for cash, $2,400.

Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the goods sold was $47,000.

Received cash from sale of May 20 plus freight paid on May 21.

Paid for purchase of May 21, less return of May 24.

Prepare an unadjusted trial balance. Accounts with zero balances can be left blank.

At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).

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 goods sold.

(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.