Please show work.

Part 8:

You must complete parts 1, 2, 3, 4, 6 and 7 before attempting to complete part 8.

Note: part 5 is optional.

1. Prepare an income statement.

Palisade Creek Co. Income Statement For the Year Ended May 31, 20Y7Advertising expenseCashMerchandise inventorySalesService RevenueSales Advertising expenseCost of merchandise soldInsurance expenseMerchandise inventoryStore equipmentCost of merchandise sold Advertising expenseGross profitGross lossIncome from operationsLynn Tolley, drawingGross profit Expenses: Selling expenses: Accounts payableRent expenseSalaries payableSales salaries expenseStore suppliesSales salaries expense Accounts receivableAdvertising expenseCashRent expenseSalesAdvertising expense Accounts payableAccumulated depreciation-store equipmentCost of merchandise soldDepreciation expenseRent expenseDepreciation expense CashLynn Tolley, capitalMiscellaneous administrativeStore suppliesStore supplies expenseStore supplies expense CashMerchandise inventoryMiscellaneous administrative expenseMiscellaneous selling expenseService RevenueMiscellaneous selling expense Total selling expenses Administrative expenses: Advertising expenseLynn Tolley, drawingOffice salaries expenseSalaries payableSalesOffice salaries expense Accounts payableAccounts receivableAdvertising expenseCost of merchandise soldRent expenseRent expense Advertising expenseCashInsurance expenseMerchandise inventoryPrepaid insuranceInsurance expense Advertising expenseMiscellaneous selling expenseMiscellaneous administrative expenseSalesStore supplies expenseMiscellaneous administrative expense Total administrative expenses Total expenses Net income

2. Prepare a statement of owner's equity.

Palisade Creek Co. Statement of Owner's Equity For the Year Ended May 31, 20Y7Decrease in owner's equityIncrease in owner's equityLynn Tolley, capital, June 1, 20Y6Lynn Tolley, capital, May 31, 20Y7Net income for the yearLynn Tolley, capital, June 1, 20Y6 Decrease in owner's equityLynn Tolley, capital, June 1, 20Y6Lynn Tolley, capital, May 31, 20Y7Net income for the yearNet loss for the yearNet income for the year Decrease in owner's equityIncrease in owner's equityLynn Tolley, capital, June 1, 20Y6Lynn Tolley, capital, May 31, 20Y7WithdrawalsDecrease in owner's equity Decrease in owner's equityIncrease in owner's equityLynn Tolley, capital, May 31, 20Y7WithdrawalsNet income for the yearIncrease in owner's equity Increase in owner's equityLynn Tolley, capital, June 1, 20Y6Lynn Tolley, capital, May 31, 20Y7WithdrawalsNet loss for the yearLynn Tolley, capital, May 31, 20Y7

3. Prepare a balance sheet.

Palisade Creek Co. Balance Sheet May 31, 20Y7AssetsCurrent assets: Accounts payableCashCustomer refunds payableSalesStore equipmentCash Accounts payableAccounts receivableAdvertising expenseCustomer refunds payableSalaries payableAccounts receivable Cost of merchandise soldCustomer refunds payableLynn Tolley, capitalMerchandise inventoryService RevenueMerchandise inventory Insurance expenseCustomer refunds payableLynn Tolley, drawingPrepaid insuranceService RevenuePrepaid insurance Cost of merchandise soldCustomer refunds payableSalaries payableStore suppliesStore supplies expenseStore supplies Total current assets Property, plant, and equipment: Customer refunds payableMerchandise inventoryMiscellaneous administrative expenseService RevenueStore equipmentStore equipment Less accumulated depreciationLess customer refunds payableLess depreciation expenseLess merchandise inventoryLess sales discountsLess accumulated depreciation Total property, plant, and equipment Total assets LiabilitiesCurrent liabilities: Accounts payableAccounts receivableCashSalesService RevenueAccounts payable Accounts receivableCashCustomer refunds payableService RevenueSales salaries expenseCustomer refunds payable CashCost of merchandise soldOffice salaries expenseSalaries payableSales salaries expenseSalaries payable Total liabilities Owner's equityAccounts receivableCashLynn Tolley, capitalLynn Tolley, drawingSalesLynn Tolley, capital Total liabilities and owner's equity

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