PART 5 PART.7 PART 8 Comprehensive Problem 2 Part 1 and Part 2: 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. Assume all accounts have normal balances. 110 Cash $83,600 PART 9 112 Accounts Receivable 233,900 115 Inventory PART 10 624,400 116 Estimated Returns Inventory 28,000 PART 1A 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 PART 3 123 Store Equipment 569,500 PARTA.... 124 Accumulated Depreciation-Store Equipment 56,700 210 Accounts Payable 96,600 PART.5 211 Salaries Payable 212 Customers Refunds Payable 50,000 PART.7 310 Common Stock 100,000 311 Retained Earnings 585,300 PART.8 PART 9 312 Dividends 410 Sales $135,000 5,069,000 510 Cost of Goods Sold 2,823,000 PART 10 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 2,823,000 60-4,800 281,000 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12,600 530 Office Salaries Expense R 531 Rent Expense 382,100 83,700 532 Insurance Expense 539 Miscellaneous Administrative Expense 7,800 Part 1: Journalize the transactions below for May, the last month of the fiscal year. If an amount box does not require an entry, leave it blank. May 1: Paid rent for May, $5,000. Datel Description May 1 Rent Expense Cash Post. Ref. Debit Credit 5,000 5,000 May 2: Sold merchandise on account to Korman Co., terms n/15, FOB shipping point, $68,500. The cost of the goods sold was $41,000. Post. Date Description Debit Ref. Accounts Bacaluable Norman fo Credit May 2: Sold merchandise on account to Korman Co., terms n/15, FOB shipping point, $68,500. The cost of the goods sold was $41,000. Date Description May 2 Accounts Receivable Korman Co. Sales May 2 Cost of Goods Sold Inventory V Post. Debit Credit Ref. 68,500 68,500 41,000 41,000 May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Date Description May 3 Inventory Accounts Payable-Martin Co. May 4: Paid freight on purchase of May 3, $600. Date Description May 4 Inventory Post. Debit Credit Ref. 36,000 36,000 V Post. Ref. Debit Credit 600 May 4: Paid freight on purchase of May 3, $600. Date Description May 4 Inventory Cash Post. Ref. Debit Credit 600 May 7: Received $22,300 cash from Halstad Co. on account. Date Description May 7 Cash Accounts Receivable-Halstad Co. 600 Post. Ref. Debit Credit 22,300 22,300 May 10: Sold merchandise with a list price of $61,500 to customers who used VISA and who redeemed $7,500 of points the goods sold was $32,000. Date Description May 10-Sales Cash Sales May 10-Cost Cost of Goods Sold Post. Ref. Debit Credit 54,000 54,000 32,000 May 10: Sold merchandise with a list price of $61,500 to customers who used VISA and who redeemed $7,500 of point-of-sale coupons. The cost of the goods sold was $32,000. Date Description May 10-Sales Cash Sales May 10-Cost Cost of Goods Sold Inventory Post. Ref. Debit Credit 54,000 54,000 32,000 32,000 May 13: Paid for merchandise purchased on May 3. Date Description Post. Ref. Debit Credit May 13 Accounts Payable-Martin Co. 36,000 Cash 35,280 Inventory 720 May 15: Paid advertising expense for last half of May, $11,000. Date Daccrintion Doct Dof nahit Cradit May 15: Paid advertising expense for last half of May, $11,000. Date Description May 15 Advertising Expense Cash May 17: Received cash from sale of May 2. Date May 17 Cash Description Post. Ref. Debit Credit 11,000 11,000 Accounts Receivable-Korman Co. May 19: Purchased merchandise for cash, $18,700. Post. Ref. Debit Credit 68,500 68,500 Date Description Post. Ref. Debit Credit May 19 Inventory 18,700 V Cash 18,700 May 17 Cash Accounts Receivable-Korman Co. May 19: Purchased merchandise for cash, $18,700. Date Description May 19 Inventory Cash 68,500 68,500 Post. Ref. Debit Credit 18,700 18,700 May 19: Paid $33,450 to Buttons Co. on account. Post. Date Description Debit Credit Ref. May 19 Accounts Payable-Buttons Co. 33,450 V Cash 33,450 Q Search May 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. Date Description May 20-Refund Customers Refunds Payable Cash May 20-Cost Inventory Estimated Returns Inventory Post. Debit Credit Ref. 13,230 V 13,230 V 8,000 8,000 May 21: Sold merchandise on account to Crescent Co., terms n/eom, FOB shipping point, $110,000. The cost of the goods sold was $70,000. Date Description May 21-Sales Accounts Receivable-Crescent Co. Sales May 21-Cost Cost of Goods Sold Inventory Post. Debit Credit Ref. 110,000 110,000 70,000 70,000 Print Item May 21: For the convenience of Crescent Co., paid freight on sale of May 21, $2,300. Date Description Post. Ref. Debit Credit May 21 Accounts Receivable-Crescent Co. 2,300 Cash 2,300 May 21: Received $42,900 cash from Gee Co. on account. Date Description May 21 Cash Accounts Receivable-Gee Co. Post. Ref. Debit Credit 42,900 42,900 May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. Date Description May 21 Inventory Accounts Payable-Osterman Co. Post. Debit Credit Ref. 88,000 88,000 Print Item May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Date Description Post. Ref. Debit Credit May 24 Accounts Payable-Osterman Co. 5,000 Inventory 5,000 May 26: Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. Post. Date Description Debit Credit Ref. May 26-Refund Customers Refunds Payable 7,500 V Cash 7,500 V May 26-Cost Inventory 4,800 Estimated Returns Inventory V 4,800 May 28: Paid sales salaries of $56,000 and office salaries of $29,000. Date Description. May 28 Sales Salaries Expense Post. Ref. Debit Credit 56,000 riffine Calaplar FunCA 3 Print frem May 28: Paid sales salaries of $56,000 and office salaries of $29,000. Date Description May 28 Sales Salaries Expense Office Salaries Expense Cash Post. Ref. Debit Credit 56,000 29,000 85,000 May 29: Purchased store supplies for cash, $2,400. Date Description May 29 Store Supplies Cash Post. Ref. Debit Credit 2,400 V 2,400 May 30: Sold merchandise on account to Turner Co., terms n/30, FOB shipping point, $78,750. The cost of the goods Post. Date Description Debit Credit Ref. May 30-Sales Accounts Receivable-Turner Co. 78,750 V Sales 78,750 May 30-Cost Cost of Goods Sold Inventory 47,000 47,000 May 31: Received cash from sale of May 21 plus freight. Date Description May 31 Cash Accounts Receivable-Crescent Co. Post. Ref. Debit Credit 112,300 112,300 May 31: Paid for purchase of May 21, less return of May 24. Date Description Post. Ref. Debit Credit May 31 Accounts Payable-Osterman Co. 83,000 Cash V 82,170 Inventory 830 V Part 2: Using the attached spreadsheet, post the journal entries from Part 1 to the general ledger. Extend the balance columns after all posting is completed. In this problem, you are not required to update or post to the a navable subsidiary ledgers. Comprehensive Problem 2 Part 3: NOTE: You must complete parts 1 and 2 before completing part 3. Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank. Palisade Creek Co. Unadjusted Trial Balance May 31, 20Y6 Cash Accounts Receivable Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Accounts Payable Debit Credit Balances Balances 83,600 X 0 0 0 0 0 Salaries Payable Customers Refunds Payable Common Stock Retained Earnings Dividends Sales Cost of Goods Sold Sales Salaries Expense 664,800 Advertising Expense 292,000 Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense 12,600 382,100 X 88,700 0 7,800 0 5,069,000 X