Palisade Creek Co. is a merchandising business that uses the perpetual inventory sytem. Trhe account balance for palisade Creek Co. as of May 1, 20Y7

110 cash $83,600

112 accounts receivable. $233,900

115 merchandise inventory $652,400

114 prepaid insurance 16,800

118 stor supplies $11,400

123 Store equiptment $569,500

124 Accumullated Depreciation-Store Equiptment $56,700

210 Accounts Payable $96,600

211 Customer Refunds Payable $50,000

212 Salaries Payable $0

310 Lynn Tolley, Capital, June 1, 20Y6 $685,300

311 Lyn Tolley, Capital, June 1, 20Y6 $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 $0

523 store supplies expense $0

529 miscellaneous Selling expense $12,600

530 office salaries expense $382,100

531 rent expense $83,700

532 insurance expense $0

539 miscellaneous adminitrative expense $7,800

Part 1 Jounalize the transaction for MAy the last month of the fiscal year

May 1:prepaid 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 merchandise sold was $32,000

May 13: Paid for merhcandise 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 $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise

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 convinience of Crescent Co., paid freight on sale of May 20, $2300

May 21: Received $42,900 cash from Gee Co. on acccount

May 21: Purchased merchandise on account from osterman Co. terms 1/10, n/30, FOB destination, $88,000

may 24: returned damaged merchandise purchased on may 21, receiving a credit memo from the seller $5,000

May 26: refunded cash on sales made cash $800. the defective merchandise was not returned by the costumer

May 28: Paid sales salaries of $56,000 and office salaries of $29,000

May 29: Purchased store supplies for cash $2,000

May 30: Sold Merchandise on account to turnner 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 May 20 plus freight paid on may 21

May 31: Paid for purchase of May 21, less returned of May 24

Part 2

Prepare an unadjusted trial balance.