Palisade Creek Co. is a retail business that uses the perpetual Inventory system. The account balances for Palisade Creek as of May 1, 2016 (unless otherwise indicated), are as follows: $ 135,000 5,059,000 2,823,000 664,800 281,000 12,600 382, 100 83,700 7,800 110 Cash $ 83,600 312 Dividends 112 Accounts Receivable 233,900 410 Sales 115 Inventory 624,400 510 Cost of Goods Sold 116 Estimated Returns Inventory 28,000 520 Sales Salaries Expense 117 Prepaid Insurance 16,800 521 Advertising Expense 118 Store Supplies 11,400 522 Depreciation Expense 123 Store Equipment 569,500 523 Store Supplies Expense 124 Accumulated Depreciation- 56,700 529 Miscellaneous Seling Expense Store Equipment 210 Accounts Payable 96,500 530 Office Salaries Expense 211 Salaries Payable 531 Rent Expense 212 Customer Refunds Payable 50,000 532 Insurance Expense 310 Common Stock 100,000 599 Miscellaneous Administrative Bpense 311 Retained Earnings 585,300 During May, the last month of the fiscal year, the following transactions were completed May 1. Paid rent for May, $5,000, 2. sold merchandise on account to Roman Co., terms 115, FOB shipping point, 568,500 The cost of the goods sold was 541,000. 3. Purchased merchandise on account from Martin Co, terms 2/10, 1/30, FOB shipping point. 536,000 4. Paid freight on purchase of May 3, 5600 2. Receved 522,300 cash from Hulstad co on account 10. Sold merchandise with a list price of $61,500 to customers who used Visa and who redeemed 57.500 of point-of-sale coupons. The cost of the goods sold was $32,000. 13. Paid for merchandise purchased on May 2 15. Paid advertising expense for fast half of May, $11,000 17. Received cash from sale of May 2 19. Purchased merchandise for cash. 518.700 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 2. The cost of the returned merchandise was $8,000 Record the following transactions on Page 21 of the journal: 21. Sold merchandise on account to Crescent Co., terms neom, 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 21, 52,300. 21. Received $42,900 cash from Gee Co. on account 21. Purchased merchandise on account from Osterman Co., terms 1/10, 1/30, POB destination, $88,000 24. Returned 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 cast 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 Tumer Co., terms 1/30, FOB shipping point. $78,750. The cost of the goods sold was $47.000. 31. Received cash from sale of May 21 plus freight 31. Paid for purchase of May 21, less return of May 24 Instructions 1. 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 colunn. Journalize the transactions for May, starting on Page 20 of the journal. 2. 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. 3. Prepare an unadjusted trial balance 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 5570,000 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 5,600 13,500 f. The adjustment for customer returns and allowance is $50,000 for sales and $35,000 for cost of goods sold 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 27 of the Journal 7. Prepare an adjusted trial balance 8. Prepare a multiple-step income statement. a statement of stockholders equity and a balance sheet. Assume that additional common stock of $10.000 was issued in January 2086. Check Figure: Net income: 5745.900 9. Journalize 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