Part 1 and Part 2 Palisade Creek 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 Cash $83,600 112 Accounts Receivable 233,900 115 Merchandise Inventory 652,400 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 123 Store Equipment 569,500 124 Accumulated DepreciationStore Equipment 56,700 210 Accounts Payable 96,600 211 Customer Refunds Payable 50,000 212 Salaries Payable 310 Lynn Tolley, Capital, June 1, 20Y6 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 382,100 531 Rent Expense 83,700 532 Insurance Expense 539 Miscellaneous Administrative Expense 7,800 Part 1 Using the attached spreadsheet, journalize the transactions for May, the last month of the fiscal year, below Part 2 Post the journal to the general ledger you created in Part 1, 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 If an amount box does not require an entry, leave it blank May 1 Paid rent for May, $5,000 Description Post Ref Debit Credit fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 May 3 Purchased merchandise on account from Martin Co , terms 2 10, n 30, FOB shipping point, $36,000 Description Post Ref Debit Credit fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 May 4 Paid freight on purchase of May 3, $600 Description Post Ref Debit Credit fill in the blank 14 fill in the blank 15 fill in the blank 17 fill in the blank 18 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 Description Post Ref Debit Credit fill in the blank 20 fill in the blank 21 fill in the blank 23 fill in the blank 24 fill in the blank 26 fill in the blank 27 fill in the blank 29 fill in the blank 30 May 7 Received $22,300 cash from Halstad Co on account Description Post Ref Debit Credit fill in the blank 32 fill in the blank 33 fill in the blank 35 fill in the blank 36 May 10 Sold merchandise for cash, $54,000 The cost of the merchandise sold was $32,000 Description Post Ref Debit Credit fill in the blank 38 fill in the blank 39 fill in the blank 41 fill in the blank 42 fill in the blank 44 fill in the blank 45 fill in the blank 47 fill in the blank 48 May 13 Paid for merchandise purchased on May 3 Description Post Ref Debit Credit fill in the blank 50 fill in the blank 51 fill in the blank 53 fill in the blank 54 May 15 Paid advertising expense for last half of May, $11,000 Description Post Ref Debit Credit fill in the blank 56 fill in the blank 57 fill in the blank 59 fill in the blank 60 May 16 Received cash from sale of May 6 Description Post Ref Debit Credit fill in the blank 62 fill in the blank 63 fill in the blank 65 fill in the blank 66 May 19 Purchased merchandise for cash, $18,700 Description Post Ref Debit Credit fill in the blank 68 fill in the blank 69 fill in the blank 71 fill in the blank 72 May 19 Paid $33,450 to Buttons Co on account Description Post Ref Debit Credit fill in the blank 74 fill in the blank 75 fill in the blank 77 fill in the blank 78 May 20 Paid Korman Co a cash refund of $5,000 for damaged merchandise from sale of May 6 Korman Co kept the merchandise Description Post Ref Debit Credit fill in the blank 80 fill in the blank 81 fill in the blank 83 fill in the blank 84 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 Description Post Ref Debit Credit fill in the blank 86 fill in the blank 87 fill in the blank 89 fill in the blank 90 fill in the blank 92 fill in the blank 93 fill in the blank 95 fill in the blank 96 May 21 For the convenience of Crescent Co , paid freight on sale of May 20, $2,300 Description Post Ref Debit Credit fill in the blank 98 fill in the blank 99 fill in the blank 101 fill in the blank 102 May 21 Received $42,900 cash from Gee Co on account Description Post Ref Debit Credit fill in the blank 104 fill in the blank 105 fill in the blank 107 fill in the blank 108 May 21 Purchased merchandise on account from Osterman Co , terms 1 10, n 30, FOB destination, $88,000 Description Post Ref Debit Credit fill in the blank 110 fill in the blank 111 fill in the blank 113 fill in the blank 114 May 24 Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000 Description Post Ref Debit Credit fill in the blank 116 fill in the blank 117 fill in the blank 119 fill in the blank 120 May 26 Refunded cash on sales made for cash, $800 The defective merchandise was not returned by the customer Description Post Ref Debit Credit fill in the blank 122 fill in the blank 123 fill in the blank 125 fill in the blank 126 May 28 Paid sales salaries of $56,000 and office salaries of $29,000 Description Post Ref Debit Credit fill in the blank 128 fill in the blank 129 fill in the blank 131 fill in the blank 132 fill in the blank 134 fill in the blank 135 May 29 Purchased store supplies for cash, $2,400 Description Post Ref Debit Credit fill in the blank 137 fill in the blank 138 fill in the blank 140 fill in the blank 141 May 30 Sold merchandise on account to Turner Co , terms 2 10, n 30, FOB shipping point, $78,750 The cost of the merchandise sold was $47,000 Description Post Ref Debit Credit fill in the blank 143 fill in the blank 144 fill in the blank 146 fill in the blank 147 fill in the blank 149 fill in the blank 150 fill in the blank 152 fill in the blank 153 May 30 Received cash from sale of May 20 plus freight paid on May 21 Description Post Ref Debit Credit fill in the blank 155 fill in the blank 156 fill in the blank 158 fill in the blank 159 May 31 Paid for purchase of May 21, less return of May 24 Description Post Ref Debit Credit fill in the blank 161 fill in the blank 162 fill in the blank 164 fill in the blank 165

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Part 1 and Part 2: Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co.

Part 1 and Part 2:

Palisade Creek 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	Cash	$83,600
112	Accounts Receivable	233,900
115	Merchandise Inventory	652,400
117	Prepaid Insurance	16,800
118	Store Supplies	11,400
123	Store Equipment	569,500
124	Accumulated DepreciationStore Equipment	56,700
210	Accounts Payable	96,600
211	Customer Refunds Payable	50,000
212	Salaries Payable
310	Lynn Tolley, Capital, June 1, 20Y6	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
531	Rent Expense	83,700
532	Insurance Expense
539	Miscellaneous Administrative Expense	7,800

Part 1: Using the attached spreadsheet, journalize the transactions for May, the last month of the fiscal year, below.

Part 2: Post the journal to the general ledger you created in Part 1, 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.

If an amount box does not require an entry, leave it blank.

May 1: Paid rent for May, $5,000.

Description	Post. Ref.	Debit	Credit
		fill in the blank 2	fill in the blank 3
		fill in the blank 5	fill in the blank 6

May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.

Description	Post. Ref.	Debit	Credit
		fill in the blank 8	fill in the blank 9
		fill in the blank 11	fill in the blank 12

May 4: Paid freight on purchase of May 3, $600.

Description	Post. Ref.	Debit	Credit
		fill in the blank 14	fill in the blank 15
		fill in the blank 17	fill in the blank 18

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.

Description	Post. Ref.	Debit	Credit
		fill in the blank 20	fill in the blank 21
		fill in the blank 23	fill in the blank 24
		fill in the blank 26	fill in the blank 27
		fill in the blank 29	fill in the blank 30

May 7: Received $22,300 cash from Halstad Co. on account.

Description	Post. Ref.	Debit	Credit
		fill in the blank 32	fill in the blank 33
		fill in the blank 35	fill in the blank 36

May 10: Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.

Description	Post. Ref.	Debit	Credit
		fill in the blank 38	fill in the blank 39
		fill in the blank 41	fill in the blank 42
		fill in the blank 44	fill in the blank 45
		fill in the blank 47	fill in the blank 48

May 13: Paid for merchandise purchased on May 3.

Description	Post. Ref.	Debit	Credit
		fill in the blank 50	fill in the blank 51
		fill in the blank 53	fill in the blank 54

May 15: Paid advertising expense for last half of May, $11,000.

Description	Post. Ref.	Debit	Credit
		fill in the blank 56	fill in the blank 57
		fill in the blank 59	fill in the blank 60

May 16: Received cash from sale of May 6.

Description	Post. Ref.	Debit	Credit
		fill in the blank 62	fill in the blank 63
		fill in the blank 65	fill in the blank 66

May 19: Purchased merchandise for cash, $18,700.

Description	Post. Ref.	Debit	Credit
		fill in the blank 68	fill in the blank 69
		fill in the blank 71	fill in the blank 72

May 19: Paid $33,450 to Buttons Co. on account.

Description	Post. Ref.	Debit	Credit
		fill in the blank 74	fill in the blank 75
		fill in the blank 77	fill in the blank 78

May 20: Paid Korman Co. a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise.

Description	Post. Ref.	Debit	Credit
		fill in the blank 80	fill in the blank 81
		fill in the blank 83	fill in the blank 84

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.

Description	Post. Ref.	Debit	Credit
		fill in the blank 86	fill in the blank 87
		fill in the blank 89	fill in the blank 90
		fill in the blank 92	fill in the blank 93
		fill in the blank 95	fill in the blank 96

May 21: For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.

Description	Post. Ref.	Debit	Credit
		fill in the blank 98	fill in the blank 99
		fill in the blank 101	fill in the blank 102

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

Description	Post. Ref.	Debit	Credit
		fill in the blank 104	fill in the blank 105
		fill in the blank 107	fill in the blank 108

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

Description	Post. Ref.	Debit	Credit
		fill in the blank 110	fill in the blank 111
		fill in the blank 113	fill in the blank 114

May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.

Description	Post. Ref.	Debit	Credit
		fill in the blank 116	fill in the blank 117
		fill in the blank 119	fill in the blank 120

May 26: Refunded cash on sales made for cash, $800. The defective merchandise was not returned by the customer.

Description	Post. Ref.	Debit	Credit
		fill in the blank 122	fill in the blank 123
		fill in the blank 125	fill in the blank 126

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

Description	Post. Ref.	Debit	Credit
		fill in the blank 128	fill in the blank 129
		fill in the blank 131	fill in the blank 132
		fill in the blank 134	fill in the blank 135

May 29: Purchased store supplies for cash, $2,400.

Description	Post. Ref.	Debit	Credit
		fill in the blank 137	fill in the blank 138
		fill in the blank 140	fill in the blank 141

May 30: Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000.

Description	Post. Ref.	Debit	Credit
		fill in the blank 143	fill in the blank 144
		fill in the blank 146	fill in the blank 147
		fill in the blank 149	fill in the blank 150
		fill in the blank 152	fill in the blank 153