Palisade Creek Co is a merchandising business The account balances for Palisade Creek Co as of May 1, 2014 (unless otherwise indicated), are as follows 310 Capital Stock 100,000 311 Retained Earnings 585,300 312 Dividends 135,000 313 Income Summary 5,221,100 During May, the last month of the fiscal year, the following transactions were completed Questions Enter the balances of each of the accounts in the appropriate balance column of a four column account Write balance in the item section and place a check mark in the Posting reference column Journalize the transactions for May, starting on page 20 of the journal Post the journal to the general ledger, extending the month end balances to the appropriate balance columns after all posting is completed In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers Prepare and unadjusted trial balance At the end of May, the following adjustments data were assembled Analyze and use these data to complete (5) and (6) Merchandise inventory on May 31 $550,000 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 6,000 13,600 5 Enter the unadjusted trial balance on a 10 column end of period spreadsheet and complete the spreadsheet 6 Journalize the post the adjusting entries Record the adjusting entries on Page 22 of the journal 7 Prepare and adjusted trial balance 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 May Paid rent for May, $5,000 Purchased merchandise on account from Martin Co , terms 2 10, n 30, FOB shipping point $36,000 May Paid rent for May, $5,000 Purchased merchandise on account from Martin Co , terms 2 10, n 30, FOB shipping point $36,000

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 16, 2024

Palisade Creek Co. is a merchandising business. The account balances for Palisade Creek Co. as of May 1, 2014 (unless otherwise indicated), are as follows:

image text in transcribed

310 Capital Stock 100,000

311 Retained Earnings 585,300

312 Dividends 135,000

313 Income Summary 5,221,100

image text in transcribed

During May, the last month of the fiscal year, the following transactions were completed:

image text in transcribed

Questions:

Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write balance in the item section and place a check mark in the Posting reference column. Journalize the transactions for May, starting on page 20 of the journal.
Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers.
Prepare and unadjusted trial balance
At the end of May, the following adjustments data were assembled. Analyze and use these data to complete (5) and (6)
1. Merchandise inventory on May 31 $550,000
2. Insurance expired during the year 12,000
3. Store Supplies on hand on May 31 4,000
4. Depreciation for the current year 14,000
5. Accrued salaries on May 31:

Sales salaries 7,000

Office salaries 6,000 13,600

5. Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet and complete the spreadsheet

6. Journalize the post the adjusting entries. Record the adjusting entries on Page 22 of the journal

7. Prepare and adjusted trial balance

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.

May Paid rent for May, $5,000. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point. $36,000. May Paid rent for May, $5,000. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point. $36,000