Palisade Greck Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co, as of May 1, 20Y7 (unless otherwise indicated), are as follows: 110 $ 83,600 Cash 112 Accounts Receivable 233,900 115 Merchandise Inventory 652.400 117 16,800 Prepaid Insurance 118 Store Supplies 11.400 123 Store Equipment 569,500 124 56,700 Accumulated Depreciation--Store Equipment 210 Accounts Payable 96,600 211 Customer Refunds Payable 50,000 212 Salaries Payable 310 Lynn Tolley, Capital June 1, 2016 685,300 311 Lynn Tolley, Drawing 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 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12,600 530 Office Salaries Expense 382,100 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: May 1. Paid rent for May, $5,000. 3. Purchased merchandise on account from Martin Co., terms 2/10, 1/30, 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 merchandise 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 merchandise 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 $5,000 for damaged merchandise from sale of May 6. Korman Co, kept the merchandise. 531 (Continued 112 Record the following machinson Hage 21 of the journal May 20. Sold merchandise on account to Crescent Co, tems 1/10, 1/30, FOR shipping point, $110,000. The cost of the merchandise sold was $70,000 21. For the convenience of Crescent Co, paid freight on sale of May 20, $2,300, 21. Received $12.900 cash from Gee Co. on account. 21. Purchased merchandise on account from Osterman Co, terms 1/10, 1/30, FOR destination. $88,000 24. Neturned damaged merchandise purchased on May 21. receiving a credit memo from the seller for $5.000 6. Hefunded cash on sales made for cash, $800. The defective merchandise was not returned by the customer 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, 130, FOB shipping point, $78,750. The cost of the merchandise 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 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 column and place a check mark (W) in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal Post the joumal 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 sutsidiary 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. Merchandise inventory on May 31 SS8,200 b. Insurance expired during the year 12.000 Store supplies on hand on May 31 4000 d Depreciation for the current year 14.000 Accrued salaries on May 31: Sales salaries $7,000 Office salaries 6,600 15,600 The adjustment for customer refunds and allowance is 560,000 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spread- sheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owner's equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the joumal Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. Insert the new balance in the owner's capital account. 10. Prepare a post-closing trial balance