Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2018 (unless otherwise indicated), are as follows: $ 135,000 5,069,000 2,823,000 664,800 281,000 110 Cash $ 83,600 312 Dividends 112 Accounts Receivable 233,900 313 Income Summary 115 Inventory 624,400 410 Sales 116 Estimated Returns Inventory 28,000 510 Cost of Goods Sold 112 Prepaid insurance 16,800 520 Sales Salaries Expense 118 Store Supplies 11,400 521 Advertising Expense 123 Store Equipment 569,500 522 Depreciation Expense 124 Accumulated 56,700 523 Store Supplies Expense Depreciation-Store Equipment 210 Accounts Payable 96,600 529 Miscellaneous Selling Expense 211 Salaries Payable 530 Office Salaries Expense 212 Customers Refunds Payable 50,000 531 Rent Expense 310 Common Stock 100,000 532 Insurance Expense 311 Retained Earnings 585,300 539 Miscellaneous Administrative Expense 12,600 382, 100 83,700 7,800 During May, the last month of the fiscal year, the following transactions were completed: 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 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 advertisg 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: 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. 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. 8. Prepare an income statement, a retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. 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. 10. Prepare a post-closing trial balance. Adjusted Debit Credit $ 84,500 $ 246,450 $ 570,000 $ 50,200 4,800 S 4,000 S 569,500 S $ $ $ $ $ $ 70,700 63,150 13,600 89,270 100,000 585,300 $ 135,000 $ $ 5,320,250 S $ $ S . 3,470 2,991,950 727,800 292,000 14,000 9,800 12,600 417,700 88,700 12,000 7,800 S S $ 6,242,270 $ 6,242,270 Cash Accounts Receivable Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Accounts Payable Salaries Payable Customer Refund Payable Retained Earning Common Stock Dividend Income Summary Sales Sales Return and Allowance Sales Discount 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