1 2 Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 9. B. Add the appropriate posting reference to the journal. DATE DESCRIPTION Closing Entries JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 23 LIABILITIES EQUITY Ledger Use the spreadsheet completed in Part 1 of this problem to complete the following steps of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. 9. B. Post the closing entries to the ledger of four-column accounts. Post-Closing Trial Balance 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. 1 Cash 2 Accounts Receivable 3 Merchandise Inventory 4 5 Store Supplies Prepaid Insurance a Palisade Creek Co. POST-CLOSING TRIAL BALANCE May 31, 20Y7 ACCOUNT TITLE 6 Store Equipment 7 Accumulated Depreciation-Store Equipment 8 Accounts Payable Customer Refunds Payable DEBIT CREDIT X Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 118 123 Pallsade Creek Co. Is a merchandising business that uses the perpetual Inventory system. The account balances for Pallsade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: Print Item Prepaid Insurance Store Supplies Store Equipment 124 Accumulated Depreciation-Store Equipment 210 211 212 310 311 523 Accounts Payable Customer Refunds Payable Salaries Payable 410 510 520 521 Advertising Expense 522 Depreciation Expense Lynn Tolley, Capital, June 1, 20Y6 Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salarles Expense Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense. $83,600 233,900 652,400 16,800. 11,400 569,500 56,700 96,600 50,000 685,300 135,000 5,069,000 2,823,000 664,800 281.000 E 12,600 382.100. H Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Instructions 530 531 532 May 539 1 3 4 Print Item Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on page 20 of the journal. 6 7 Journal Ledger Unadjusted Trial Balance 20 382,100 83,700 10 13 15 16 Received cash from sale of May 6. 19 19 7,800 Paid rent for May, $5,000. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Paid freight on purchase of May 3, $600. 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. Received $22,300 cash from Halstad Co. on account. Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. Paid for merchandise purchased on May 3. Paid advertising expense for last half of May, $11,000. Purchased merchandise for cash, $18,700. Paid $33,450 to Buttons Co. on account. Adjusted Trial Balance Paid Korman Co, a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise. E Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 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. 21 21 21 24 26 Print Item 28 29 30 30 31 For the convenience of Crescent Co.. paid freight on sale of May 20, $2,300. Received $42,900 cash from Gee Co. on account. Purchased merchandise on account from Osterman Co.. terms 1/10, n/30, FOB destination. $68,000. Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Refunded 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. Purchased store supplies for cash, $2,400. 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. Received cash from sale of May 20 plus freight paid on May 21, Pald for purchase of May 21, less return of May 24. Required: 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journel to a leager of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 belences of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. White Balance in the item section, and enter "X" in the Posting Reference column. 189 Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the Mey 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. Write Balance in the item section, and enter "X" in the Posting Reference column. B. 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 subsidiery ledgers. Add the appropriate posting reference to the journal. 3. Prepare en unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, 54,000 Depreciation for the current year, $14,000 Accrued selenes on May 31 Sales salaries, $7,000 Office salaries, 36,600 Total accrued salaries: $13,600 The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial belence on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. I - E Comp Prob Il Print Item Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Instructions Ledger Unadjusted Trial Balance Adjusted Trial Balance B. 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. Add the appropriate posting reference to the journal. 3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment dete were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, $4,000 Depreciation for the current year, $14,000 Accrued salaries on May 31: Sales salaries, $7.000 Office salaries, $6,600 Total accrued salaries: $13,600. The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal. B. Post the adjusting entries. Add the appropriate posting reference to the journal. 7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank. *Refer to the chart of accounts for the exact wording of the account titles. CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. L 114 B Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Prepaid Insurance 118 Store Supplies LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable EQUITY CHART OF ACCOUNTS 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Journal Note: Scroll down for pages 21 and 22 of the journal. 1 2 3 1. B. Journalize the transactions for May, starting on Page 20 of the journal.* 2. Add the appropriate posting reference to the journal. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.* 6. B. Add the appropriate posting reference to the journal. *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 4 DATE DESCRIPTION JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 20 LIABILITIES EQUITY Ledger 1. Download the attached SPREADSHEET and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the date column. Write Balance in the item section, and enter "X" in the Posting Reference column. 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. 6. B. Post the adjusting entries. Ch. 6 Comprehensive Problem 2, Part 2 Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. During May, the last month of the fiscal year, transactions were completed. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owner's equity, and a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner's equity, and a balance sheet.* < 9. A. Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal. 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. *For guidance in completing the financial statements, be sure to read the instructions above each statement carefully. Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable CHART OF ACCOUNTS 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment EQUITY 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Statement of Owner's Equity Income Statement 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. 1 2 Palisade Creek Co. Income Statement (Label) Statement of Owner's Equity 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a statement of owner's equity. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a statement of owner's equity. Be sure to complete the statement heading. Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts that represent reduction as negative numbers using a minus sign. 1 2 Palisade Creek Co. Statement of Owner's Equity (Label) 1 2 Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 9. B. Add the appropriate posting reference to the journal. DATE DESCRIPTION Closing Entries JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 23 LIABILITIES EQUITY Ledger Use the spreadsheet completed in Part 1 of this problem to complete the following steps of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. 9. B. Post the closing entries to the ledger of four-column accounts. Post-Closing Trial Balance 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. 1 Cash 2 Accounts Receivable 3 Merchandise Inventory 4 5 Store Supplies Prepaid Insurance a Palisade Creek Co. POST-CLOSING TRIAL BALANCE May 31, 20Y7 ACCOUNT TITLE 6 Store Equipment 7 Accumulated Depreciation-Store Equipment 8 Accounts Payable Customer Refunds Payable DEBIT CREDIT X Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 118 123 Pallsade Creek Co. Is a merchandising business that uses the perpetual Inventory system. The account balances for Pallsade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: Print Item Prepaid Insurance Store Supplies Store Equipment 124 Accumulated Depreciation-Store Equipment 210 211 212 310 311 523 Accounts Payable Customer Refunds Payable Salaries Payable 410 510 520 521 Advertising Expense 522 Depreciation Expense Lynn Tolley, Capital, June 1, 20Y6 Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salarles Expense Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense. $83,600 233,900 652,400 16,800. 11,400 569,500 56,700 96,600 50,000 685,300 135,000 5,069,000 2,823,000 664,800 281.000 E 12,600 382.100. H Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Instructions 530 531 532 May 539 1 3 4 Print Item Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on page 20 of the journal. 6 7 Journal Ledger Unadjusted Trial Balance 20 382,100 83,700 10 13 15 16 Received cash from sale of May 6. 19 19 7,800 Paid rent for May, $5,000. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Paid freight on purchase of May 3, $600. 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. Received $22,300 cash from Halstad Co. on account. Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. Paid for merchandise purchased on May 3. Paid advertising expense for last half of May, $11,000. Purchased merchandise for cash, $18,700. Paid $33,450 to Buttons Co. on account. Adjusted Trial Balance Paid Korman Co, a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise. E Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 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. 21 21 21 24 26 Print Item 28 29 30 30 31 For the convenience of Crescent Co.. paid freight on sale of May 20, $2,300. Received $42,900 cash from Gee Co. on account. Purchased merchandise on account from Osterman Co.. terms 1/10, n/30, FOB destination. $68,000. Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Refunded 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. Purchased store supplies for cash, $2,400. 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. Received cash from sale of May 20 plus freight paid on May 21, Pald for purchase of May 21, less return of May 24. Required: 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journel to a leager of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 belences of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. White Balance in the item section, and enter "X" in the Posting Reference column. 189 Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the Mey 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. Write Balance in the item section, and enter "X" in the Posting Reference column. B. 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 subsidiery ledgers. Add the appropriate posting reference to the journal. 3. Prepare en unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, 54,000 Depreciation for the current year, $14,000 Accrued selenes on May 31 Sales salaries, $7,000 Office salaries, 36,600 Total accrued salaries: $13,600 The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial belence on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. I - E Comp Prob Il Print Item Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Instructions Ledger Unadjusted Trial Balance Adjusted Trial Balance B. 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. Add the appropriate posting reference to the journal. 3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment dete were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, $4,000 Depreciation for the current year, $14,000 Accrued salaries on May 31: Sales salaries, $7.000 Office salaries, $6,600 Total accrued salaries: $13,600. The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal. B. Post the adjusting entries. Add the appropriate posting reference to the journal. 7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank. *Refer to the chart of accounts for the exact wording of the account titles. CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. L 114 B Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Prepaid Insurance 118 Store Supplies LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable EQUITY CHART OF ACCOUNTS 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Journal Note: Scroll down for pages 21 and 22 of the journal. 1 2 3 1. B. Journalize the transactions for May, starting on Page 20 of the journal.* 2. Add the appropriate posting reference to the journal. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.* 6. B. Add the appropriate posting reference to the journal. *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 4 DATE DESCRIPTION JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 20 LIABILITIES EQUITY Ledger 1. Download the attached SPREADSHEET and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the date column. Write Balance in the item section, and enter "X" in the Posting Reference column. 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. 6. B. Post the adjusting entries. Ch. 6 Comprehensive Problem 2, Part 2 Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. During May, the last month of the fiscal year, transactions were completed. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owner's equity, and a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner's equity, and a balance sheet.* < 9. A. Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal. 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. *For guidance in completing the financial statements, be sure to read the instructions above each statement carefully. Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable CHART OF ACCOUNTS 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment EQUITY 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Statement of Owner's Equity Income Statement 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. 1 2 Palisade Creek Co. Income Statement (Label) Statement of Owner's Equity 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a statement of owner's equity. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a statement of owner's equity. Be sure to complete the statement heading. Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts that represent reduction as negative numbers using a minus sign. 1 2 Palisade Creek Co. Statement of Owner's Equity (Label) 1 2 Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 9. B. Add the appropriate posting reference to the journal. DATE DESCRIPTION Closing Entries JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 23 LIABILITIES EQUITY Ledger Use the spreadsheet completed in Part 1 of this problem to complete the following steps of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. 9. B. Post the closing entries to the ledger of four-column accounts. Post-Closing Trial Balance 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. 1 Cash 2 Accounts Receivable 3 Merchandise Inventory 4 5 Store Supplies Prepaid Insurance a Palisade Creek Co. POST-CLOSING TRIAL BALANCE May 31, 20Y7 ACCOUNT TITLE 6 Store Equipment 7 Accumulated Depreciation-Store Equipment 8 Accounts Payable Customer Refunds Payable DEBIT CREDIT X Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 118 123 Pallsade Creek Co. Is a merchandising business that uses the perpetual Inventory system. The account balances for Pallsade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: Print Item Prepaid Insurance Store Supplies Store Equipment 124 Accumulated Depreciation-Store Equipment 210 211 212 310 311 523 Accounts Payable Customer Refunds Payable Salaries Payable 410 510 520 521 Advertising Expense 522 Depreciation Expense Lynn Tolley, Capital, June 1, 20Y6 Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salarles Expense Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense. $83,600 233,900 652,400 16,800. 11,400 569,500 56,700 96,600 50,000 685,300 135,000 5,069,000 2,823,000 664,800 281.000 E 12,600 382.100. H Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Instructions 530 531 532 May 539 1 3 4 Print Item Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on page 20 of the journal. 6 7 Journal Ledger Unadjusted Trial Balance 20 382,100 83,700 10 13 15 16 Received cash from sale of May 6. 19 19 7,800 Paid rent for May, $5,000. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Paid freight on purchase of May 3, $600. 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. Received $22,300 cash from Halstad Co. on account. Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. Paid for merchandise purchased on May 3. Paid advertising expense for last half of May, $11,000. Purchased merchandise for cash, $18,700. Paid $33,450 to Buttons Co. on account. Adjusted Trial Balance Paid Korman Co, a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise. E Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 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. 21 21 21 24 26 Print Item 28 29 30 30 31 For the convenience of Crescent Co.. paid freight on sale of May 20, $2,300. Received $42,900 cash from Gee Co. on account. Purchased merchandise on account from Osterman Co.. terms 1/10, n/30, FOB destination. $68,000. Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Refunded 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. Purchased store supplies for cash, $2,400. 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. Received cash from sale of May 20 plus freight paid on May 21, Pald for purchase of May 21, less return of May 24. Required: 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journel to a leager of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 belences of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. White Balance in the item section, and enter "X" in the Posting Reference column. 189 Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the Mey 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. Write Balance in the item section, and enter "X" in the Posting Reference column. B. 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 subsidiery ledgers. Add the appropriate posting reference to the journal. 3. Prepare en unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, 54,000 Depreciation for the current year, $14,000 Accrued selenes on May 31 Sales salaries, $7,000 Office salaries, 36,600 Total accrued salaries: $13,600 The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial belence on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. I - E Comp Prob Il Print Item Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Instructions Ledger Unadjusted Trial Balance Adjusted Trial Balance B. 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. Add the appropriate posting reference to the journal. 3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment dete were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, $4,000 Depreciation for the current year, $14,000 Accrued salaries on May 31: Sales salaries, $7.000 Office salaries, $6,600 Total accrued salaries: $13,600. The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal. B. Post the adjusting entries. Add the appropriate posting reference to the journal. 7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank. *Refer to the chart of accounts for the exact wording of the account titles. CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. L 114 B Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Prepaid Insurance 118 Store Supplies LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable EQUITY CHART OF ACCOUNTS 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Journal Note: Scroll down for pages 21 and 22 of the journal. 1 2 3 1. B. Journalize the transactions for May, starting on Page 20 of the journal.* 2. Add the appropriate posting reference to the journal. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.* 6. B. Add the appropriate posting reference to the journal. *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 4 DATE DESCRIPTION JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 20 LIABILITIES EQUITY Ledger 1. Download the attached SPREADSHEET and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the date column. Write Balance in the item section, and enter "X" in the Posting Reference column. 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. 6. B. Post the adjusting entries. Ch. 6 Comprehensive Problem 2, Part 2 Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. During May, the last month of the fiscal year, transactions were completed. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owner's equity, and a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner's equity, and a balance sheet.* < 9. A. Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal. 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. *For guidance in completing the financial statements, be sure to read the instructions above each statement carefully. Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable CHART OF ACCOUNTS 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment EQUITY 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Statement of Owner's Equity Income Statement 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. 1 2 Palisade Creek Co. Income Statement (Label) Statement of Owner's Equity 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a statement of owner's equity. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a statement of owner's equity. Be sure to complete the statement heading. Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts that represent reduction as negative numbers using a minus sign. 1 2 Palisade Creek Co. Statement of Owner's Equity (Label) 1 2 Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 9. B. Add the appropriate posting reference to the journal. DATE DESCRIPTION Closing Entries JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 23 LIABILITIES EQUITY Ledger Use the spreadsheet completed in Part 1 of this problem to complete the following steps of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. 9. B. Post the closing entries to the ledger of four-column accounts. Post-Closing Trial Balance 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. 1 Cash 2 Accounts Receivable 3 Merchandise Inventory 4 5 Store Supplies Prepaid Insurance a Palisade Creek Co. POST-CLOSING TRIAL BALANCE May 31, 20Y7 ACCOUNT TITLE 6 Store Equipment 7 Accumulated Depreciation-Store Equipment 8 Accounts Payable Customer Refunds Payable DEBIT CREDIT X Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 118 123 Pallsade Creek Co. Is a merchandising business that uses the perpetual Inventory system. The account balances for Pallsade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: Print Item Prepaid Insurance Store Supplies Store Equipment 124 Accumulated Depreciation-Store Equipment 210 211 212 310 311 523 Accounts Payable Customer Refunds Payable Salaries Payable 410 510 520 521 Advertising Expense 522 Depreciation Expense Lynn Tolley, Capital, June 1, 20Y6 Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salarles Expense Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense. $83,600 233,900 652,400 16,800. 11,400 569,500 56,700 96,600 50,000 685,300 135,000 5,069,000 2,823,000 664,800 281.000 E 12,600 382.100. H Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Instructions 530 531 532 May 539 1 3 4 Print Item Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on page 20 of the journal. 6 7 Journal Ledger Unadjusted Trial Balance 20 382,100 83,700 10 13 15 16 Received cash from sale of May 6. 19 19 7,800 Paid rent for May, $5,000. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Paid freight on purchase of May 3, $600. 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. Received $22,300 cash from Halstad Co. on account. Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. Paid for merchandise purchased on May 3. Paid advertising expense for last half of May, $11,000. Purchased merchandise for cash, $18,700. Paid $33,450 to Buttons Co. on account. Adjusted Trial Balance Paid Korman Co, a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise. E Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 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. 21 21 21 24 26 Print Item 28 29 30 30 31 For the convenience of Crescent Co.. paid freight on sale of May 20, $2,300. Received $42,900 cash from Gee Co. on account. Purchased merchandise on account from Osterman Co.. terms 1/10, n/30, FOB destination. $68,000. Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Refunded 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. Purchased store supplies for cash, $2,400. 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. Received cash from sale of May 20 plus freight paid on May 21, Pald for purchase of May 21, less return of May 24. Required: 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journel to a leager of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 belences of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. White Balance in the item section, and enter "X" in the Posting Reference column. 189 Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the Mey 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. Write Balance in the item section, and enter "X" in the Posting Reference column. B. 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 subsidiery ledgers. Add the appropriate posting reference to the journal. 3. Prepare en unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, 54,000 Depreciation for the current year, $14,000 Accrued selenes on May 31 Sales salaries, $7,000 Office salaries, 36,600 Total accrued salaries: $13,600 The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial belence on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. I - E Comp Prob Il Print Item Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Instructions Ledger Unadjusted Trial Balance Adjusted Trial Balance B. 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. Add the appropriate posting reference to the journal. 3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment dete were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, $4,000 Depreciation for the current year, $14,000 Accrued salaries on May 31: Sales salaries, $7.000 Office salaries, $6,600 Total accrued salaries: $13,600. The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal. B. Post the adjusting entries. Add the appropriate posting reference to the journal. 7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank. *Refer to the chart of accounts for the exact wording of the account titles. CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. L 114 B Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Prepaid Insurance 118 Store Supplies LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable EQUITY CHART OF ACCOUNTS 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Journal Note: Scroll down for pages 21 and 22 of the journal. 1 2 3 1. B. Journalize the transactions for May, starting on Page 20 of the journal.* 2. Add the appropriate posting reference to the journal. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.* 6. B. Add the appropriate posting reference to the journal. *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 4 DATE DESCRIPTION JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 20 LIABILITIES EQUITY Ledger 1. Download the attached SPREADSHEET and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the date column. Write Balance in the item section, and enter "X" in the Posting Reference column. 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. 6. B. Post the adjusting entries. Ch. 6 Comprehensive Problem 2, Part 2 Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. During May, the last month of the fiscal year, transactions were completed. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owner's equity, and a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner's equity, and a balance sheet.* < 9. A. Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal. 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. *For guidance in completing the financial statements, be sure to read the instructions above each statement carefully. Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable CHART OF ACCOUNTS 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment EQUITY 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Statement of Owner's Equity Income Statement 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. 1 2 Palisade Creek Co. Income Statement (Label) Statement of Owner's Equity 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a statement of owner's equity. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a statement of owner's equity. Be sure to complete the statement heading. Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts that represent reduction as negative numbers using a minus sign. 1 2 Palisade Creek Co. Statement of Owner's Equity (Label) 1 2 Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 9. B. Add the appropriate posting reference to the journal. DATE DESCRIPTION Closing Entries JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 23 LIABILITIES EQUITY Ledger Use the spreadsheet completed in Part 1 of this problem to complete the following steps of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. 9. B. Post the closing entries to the ledger of four-column accounts. Post-Closing Trial Balance 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. 1 Cash 2 Accounts Receivable 3 Merchandise Inventory 4 5 Store Supplies Prepaid Insurance a Palisade Creek Co. POST-CLOSING TRIAL BALANCE May 31, 20Y7 ACCOUNT TITLE 6 Store Equipment 7 Accumulated Depreciation-Store Equipment 8 Accounts Payable Customer Refunds Payable DEBIT CREDIT X Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 118 123 Pallsade Creek Co. Is a merchandising business that uses the perpetual Inventory system. The account balances for Pallsade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: Print Item Prepaid Insurance Store Supplies Store Equipment 124 Accumulated Depreciation-Store Equipment 210 211 212 310 311 523 Accounts Payable Customer Refunds Payable Salaries Payable 410 510 520 521 Advertising Expense 522 Depreciation Expense Lynn Tolley, Capital, June 1, 20Y6 Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salarles Expense Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense. $83,600 233,900 652,400 16,800. 11,400 569,500 56,700 96,600 50,000 685,300 135,000 5,069,000 2,823,000 664,800 281.000 E 12,600 382.100. H Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Instructions 530 531 532 May 539 1 3 4 Print Item Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on page 20 of the journal. 6 7 Journal Ledger Unadjusted Trial Balance 20 382,100 83,700 10 13 15 16 Received cash from sale of May 6. 19 19 7,800 Paid rent for May, $5,000. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Paid freight on purchase of May 3, $600. 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. Received $22,300 cash from Halstad Co. on account. Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. Paid for merchandise purchased on May 3. Paid advertising expense for last half of May, $11,000. Purchased merchandise for cash, $18,700. Paid $33,450 to Buttons Co. on account. Adjusted Trial Balance Paid Korman Co, a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise. E Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 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. 21 21 21 24 26 Print Item 28 29 30 30 31 For the convenience of Crescent Co.. paid freight on sale of May 20, $2,300. Received $42,900 cash from Gee Co. on account. Purchased merchandise on account from Osterman Co.. terms 1/10, n/30, FOB destination. $68,000. Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Refunded 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. Purchased store supplies for cash, $2,400. 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. Received cash from sale of May 20 plus freight paid on May 21, Pald for purchase of May 21, less return of May 24. Required: 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journel to a leager of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 belences of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. White Balance in the item section, and enter "X" in the Posting Reference column. 189 Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the Mey 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. Write Balance in the item section, and enter "X" in the Posting Reference column. B. 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 subsidiery ledgers. Add the appropriate posting reference to the journal. 3. Prepare en unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, 54,000 Depreciation for the current year, $14,000 Accrued selenes on May 31 Sales salaries, $7,000 Office salaries, 36,600 Total accrued salaries: $13,600 The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial belence on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. I - E Comp Prob Il Print Item Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Instructions Ledger Unadjusted Trial Balance Adjusted Trial Balance B. 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. Add the appropriate posting reference to the journal. 3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment dete were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, $4,000 Depreciation for the current year, $14,000 Accrued salaries on May 31: Sales salaries, $7.000 Office salaries, $6,600 Total accrued salaries: $13,600. The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal. B. Post the adjusting entries. Add the appropriate posting reference to the journal. 7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank. *Refer to the chart of accounts for the exact wording of the account titles. CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. L 114 B Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Prepaid Insurance 118 Store Supplies LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable EQUITY CHART OF ACCOUNTS 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Journal Note: Scroll down for pages 21 and 22 of the journal. 1 2 3 1. B. Journalize the transactions for May, starting on Page 20 of the journal.* 2. Add the appropriate posting reference to the journal. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.* 6. B. Add the appropriate posting reference to the journal. *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 4 DATE DESCRIPTION JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 20 LIABILITIES EQUITY Ledger 1. Download the attached SPREADSHEET and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the date column. Write Balance in the item section, and enter "X" in the Posting Reference column. 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. 6. B. Post the adjusting entries. Ch. 6 Comprehensive Problem 2, Part 2 Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. During May, the last month of the fiscal year, transactions were completed. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owner's equity, and a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner's equity, and a balance sheet.* < 9. A. Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal. 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. *For guidance in completing the financial statements, be sure to read the instructions above each statement carefully. Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable CHART OF ACCOUNTS 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment EQUITY 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Statement of Owner's Equity Income Statement 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. 1 2 Palisade Creek Co. Income Statement (Label) Statement of Owner's Equity 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a statement of owner's equity. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a statement of owner's equity. Be sure to complete the statement heading. Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts that represent reduction as negative numbers using a minus sign. 1 2 Palisade Creek Co. Statement of Owner's Equity (Label) 1 2 Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 9. B. Add the appropriate posting reference to the journal. DATE DESCRIPTION Closing Entries JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 23 LIABILITIES EQUITY Ledger Use the spreadsheet completed in Part 1 of this problem to complete the following steps of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. 9. B. Post the closing entries to the ledger of four-column accounts. Post-Closing Trial Balance 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. 1 Cash 2 Accounts Receivable 3 Merchandise Inventory 4 5 Store Supplies Prepaid Insurance a Palisade Creek Co. POST-CLOSING TRIAL BALANCE May 31, 20Y7 ACCOUNT TITLE 6 Store Equipment 7 Accumulated Depreciation-Store Equipment 8 Accounts Payable Customer Refunds Payable DEBIT CREDIT X Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 118 123 Pallsade Creek Co. Is a merchandising business that uses the perpetual Inventory system. The account balances for Pallsade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: Print Item Prepaid Insurance Store Supplies Store Equipment 124 Accumulated Depreciation-Store Equipment 210 211 212 310 311 523 Accounts Payable Customer Refunds Payable Salaries Payable 410 510 520 521 Advertising Expense 522 Depreciation Expense Lynn Tolley, Capital, June 1, 20Y6 Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salarles Expense Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense. $83,600 233,900 652,400 16,800. 11,400 569,500 56,700 96,600 50,000 685,300 135,000 5,069,000 2,823,000 664,800 281.000 E 12,600 382.100. H Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Instructions 530 531 532 May 539 1 3 4 Print Item Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on page 20 of the journal. 6 7 Journal Ledger Unadjusted Trial Balance 20 382,100 83,700 10 13 15 16 Received cash from sale of May 6. 19 19 7,800 Paid rent for May, $5,000. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Paid freight on purchase of May 3, $600. 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. Received $22,300 cash from Halstad Co. on account. Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. Paid for merchandise purchased on May 3. Paid advertising expense for last half of May, $11,000. Purchased merchandise for cash, $18,700. Paid $33,450 to Buttons Co. on account. Adjusted Trial Balance Paid Korman Co, a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise. E Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 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. 21 21 21 24 26 Print Item 28 29 30 30 31 For the convenience of Crescent Co.. paid freight on sale of May 20, $2,300. Received $42,900 cash from Gee Co. on account. Purchased merchandise on account from Osterman Co.. terms 1/10, n/30, FOB destination. $68,000. Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Refunded 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. Purchased store supplies for cash, $2,400. 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. Received cash from sale of May 20 plus freight paid on May 21, Pald for purchase of May 21, less return of May 24. Required: 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journel to a leager of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 belences of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. White Balance in the item section, and enter "X" in the Posting Reference column. 189 Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the Mey 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. Write Balance in the item section, and enter "X" in the Posting Reference column. B. 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 subsidiery ledgers. Add the appropriate posting reference to the journal. 3. Prepare en unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, 54,000 Depreciation for the current year, $14,000 Accrued selenes on May 31 Sales salaries, $7,000 Office salaries, 36,600 Total accrued salaries: $13,600 The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial belence on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. I - E Comp Prob Il Print Item Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Instructions Ledger Unadjusted Trial Balance Adjusted Trial Balance B. 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. Add the appropriate posting reference to the journal. 3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment dete were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, $4,000 Depreciation for the current year, $14,000 Accrued salaries on May 31: Sales salaries, $7.000 Office salaries, $6,600 Total accrued salaries: $13,600. The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal. B. Post the adjusting entries. Add the appropriate posting reference to the journal. 7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank. *Refer to the chart of accounts for the exact wording of the account titles. CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. L 114 B Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Prepaid Insurance 118 Store Supplies LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable EQUITY CHART OF ACCOUNTS 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Journal Note: Scroll down for pages 21 and 22 of the journal. 1 2 3 1. B. Journalize the transactions for May, starting on Page 20 of the journal.* 2. Add the appropriate posting reference to the journal. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.* 6. B. Add the appropriate posting reference to the journal. *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 4 DATE DESCRIPTION JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 20 LIABILITIES EQUITY Ledger 1. Download the attached SPREADSHEET and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the date column. Write Balance in the item section, and enter "X" in the Posting Reference column. 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. 6. B. Post the adjusting entries. Ch. 6 Comprehensive Problem 2, Part 2 Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. During May, the last month of the fiscal year, transactions were completed. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owner's equity, and a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner's equity, and a balance sheet.* < 9. A. Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal. 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. *For guidance in completing the financial statements, be sure to read the instructions above each statement carefully. Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable CHART OF ACCOUNTS 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment EQUITY 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Statement of Owner's Equity Income Statement 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. 1 2 Palisade Creek Co. Income Statement (Label) Statement of Owner's Equity 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a statement of owner's equity. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a statement of owner's equity. Be sure to complete the statement heading. Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts that represent reduction as negative numbers using a minus sign. 1 2 Palisade Creek Co. Statement of Owner's Equity (Label) 1 2 Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 9. B. Add the appropriate posting reference to the journal. DATE DESCRIPTION Closing Entries JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 23 LIABILITIES EQUITY Ledger Use the spreadsheet completed in Part 1 of this problem to complete the following steps of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. 9. B. Post the closing entries to the ledger of four-column accounts. Post-Closing Trial Balance 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. 1 Cash 2 Accounts Receivable 3 Merchandise Inventory 4 5 Store Supplies Prepaid Insurance a Palisade Creek Co. POST-CLOSING TRIAL BALANCE May 31, 20Y7 ACCOUNT TITLE 6 Store Equipment 7 Accumulated Depreciation-Store Equipment 8 Accounts Payable Customer Refunds Payable DEBIT CREDIT X Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 118 123 Pallsade Creek Co. Is a merchandising business that uses the perpetual Inventory system. The account balances for Pallsade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: Print Item Prepaid Insurance Store Supplies Store Equipment 124 Accumulated Depreciation-Store Equipment 210 211 212 310 311 523 Accounts Payable Customer Refunds Payable Salaries Payable 410 510 520 521 Advertising Expense 522 Depreciation Expense Lynn Tolley, Capital, June 1, 20Y6 Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salarles Expense Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense. $83,600 233,900 652,400 16,800. 11,400 569,500 56,700 96,600 50,000 685,300 135,000 5,069,000 2,823,000 664,800 281.000 E 12,600 382.100. H Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Instructions 530 531 532 May 539 1 3 4 Print Item Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on page 20 of the journal. 6 7 Journal Ledger Unadjusted Trial Balance 20 382,100 83,700 10 13 15 16 Received cash from sale of May 6. 19 19 7,800 Paid rent for May, $5,000. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Paid freight on purchase of May 3, $600. 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. Received $22,300 cash from Halstad Co. on account. Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. Paid for merchandise purchased on May 3. Paid advertising expense for last half of May, $11,000. Purchased merchandise for cash, $18,700. Paid $33,450 to Buttons Co. on account. Adjusted Trial Balance Paid Korman Co, a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise. E Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 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. 21 21 21 24 26 Print Item 28 29 30 30 31 For the convenience of Crescent Co.. paid freight on sale of May 20, $2,300. Received $42,900 cash from Gee Co. on account. Purchased merchandise on account from Osterman Co.. terms 1/10, n/30, FOB destination. $68,000. Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Refunded 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. Purchased store supplies for cash, $2,400. 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. Received cash from sale of May 20 plus freight paid on May 21, Pald for purchase of May 21, less return of May 24. Required: 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journel to a leager of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 belences of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. White Balance in the item section, and enter "X" in the Posting Reference column. 189 Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the Mey 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. Write Balance in the item section, and enter "X" in the Posting Reference column. B. 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 subsidiery ledgers. Add the appropriate posting reference to the journal. 3. Prepare en unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, 54,000 Depreciation for the current year, $14,000 Accrued selenes on May 31 Sales salaries, $7,000 Office salaries, 36,600 Total accrued salaries: $13,600 The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial belence on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. I - E Comp Prob Il Print Item Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Instructions Ledger Unadjusted Trial Balance Adjusted Trial Balance B. 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. Add the appropriate posting reference to the journal. 3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment dete were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, $4,000 Depreciation for the current year, $14,000 Accrued salaries on May 31: Sales salaries, $7.000 Office salaries, $6,600 Total accrued salaries: $13,600. The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal. B. Post the adjusting entries. Add the appropriate posting reference to the journal. 7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank. *Refer to the chart of accounts for the exact wording of the account titles. CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. L 114 B Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Prepaid Insurance 118 Store Supplies LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable EQUITY CHART OF ACCOUNTS 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Journal Note: Scroll down for pages 21 and 22 of the journal. 1 2 3 1. B. Journalize the transactions for May, starting on Page 20 of the journal.* 2. Add the appropriate posting reference to the journal. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.* 6. B. Add the appropriate posting reference to the journal. *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 4 DATE DESCRIPTION JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 20 LIABILITIES EQUITY Ledger 1. Download the attached SPREADSHEET and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the date column. Write Balance in the item section, and enter "X" in the Posting Reference column. 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. 6. B. Post the adjusting entries. Ch. 6 Comprehensive Problem 2, Part 2 Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. During May, the last month of the fiscal year, transactions were completed. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owner's equity, and a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner's equity, and a balance sheet.* < 9. A. Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal. 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. *For guidance in completing the financial statements, be sure to read the instructions above each statement carefully. Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable CHART OF ACCOUNTS 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment EQUITY 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Statement of Owner's Equity Income Statement 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. 1 2 Palisade Creek Co. Income Statement (Label) Statement of Owner's Equity 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a statement of owner's equity. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a statement of owner's equity. Be sure to complete the statement heading. Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts that represent reduction as negative numbers using a minus sign. 1 2 Palisade Creek Co. Statement of Owner's Equity (Label) 1 2 Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 9. B. Add the appropriate posting reference to the journal. DATE DESCRIPTION Closing Entries JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 23 LIABILITIES EQUITY Ledger Use the spreadsheet completed in Part 1 of this problem to complete the following steps of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. 9. B. Post the closing entries to the ledger of four-column accounts. Post-Closing Trial Balance 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. 1 Cash 2 Accounts Receivable 3 Merchandise Inventory 4 5 Store Supplies Prepaid Insurance a Palisade Creek Co. POST-CLOSING TRIAL BALANCE May 31, 20Y7 ACCOUNT TITLE 6 Store Equipment 7 Accumulated Depreciation-Store Equipment 8 Accounts Payable Customer Refunds Payable DEBIT CREDIT X Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 118 123 Pallsade Creek Co. Is a merchandising business that uses the perpetual Inventory system. The account balances for Pallsade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: Print Item Prepaid Insurance Store Supplies Store Equipment 124 Accumulated Depreciation-Store Equipment 210 211 212 310 311 523 Accounts Payable Customer Refunds Payable Salaries Payable 410 510 520 521 Advertising Expense 522 Depreciation Expense Lynn Tolley, Capital, June 1, 20Y6 Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salarles Expense Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense. $83,600 233,900 652,400 16,800. 11,400 569,500 56,700 96,600 50,000 685,300 135,000 5,069,000 2,823,000 664,800 281.000 E 12,600 382.100. H Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Instructions 530 531 532 May 539 1 3 4 Print Item Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on page 20 of the journal. 6 7 Journal Ledger Unadjusted Trial Balance 20 382,100 83,700 10 13 15 16 Received cash from sale of May 6. 19 19 7,800 Paid rent for May, $5,000. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Paid freight on purchase of May 3, $600. 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. Received $22,300 cash from Halstad Co. on account. Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. Paid for merchandise purchased on May 3. Paid advertising expense for last half of May, $11,000. Purchased merchandise for cash, $18,700. Paid $33,450 to Buttons Co. on account. Adjusted Trial Balance Paid Korman Co, a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise. E Comp Prob II Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 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. 21 21 21 24 26 Print Item 28 29 30 30 31 For the convenience of Crescent Co.. paid freight on sale of May 20, $2,300. Received $42,900 cash from Gee Co. on account. Purchased merchandise on account from Osterman Co.. terms 1/10, n/30, FOB destination. $68,000. Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Refunded 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. Purchased store supplies for cash, $2,400. 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. Received cash from sale of May 20 plus freight paid on May 21, Pald for purchase of May 21, less return of May 24. Required: 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journel to a leager of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 belences of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. White Balance in the item section, and enter "X" in the Posting Reference column. 189 Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Adjusted Trial Balance Instructions 1. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the Mey 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the dete column. Write Balance in the item section, and enter "X" in the Posting Reference column. B. 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 subsidiery ledgers. Add the appropriate posting reference to the journal. 3. Prepare en unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, 54,000 Depreciation for the current year, $14,000 Accrued selenes on May 31 Sales salaries, $7,000 Office salaries, 36,600 Total accrued salaries: $13,600 The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial belence on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. I - E Comp Prob Il Print Item Ch. 6 Comprehensive Problem 2, Part 1 Instructions Chart of Accounts Journal Instructions Ledger Unadjusted Trial Balance Adjusted Trial Balance B. 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. Add the appropriate posting reference to the journal. 3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank. 4. At the end of May, the following adjustment dete were assembled. Analyze and use these data to complete (5) and (6). Merchandise inventory on May 31, $585,200 Insurance expired during the year, $12,000 Store supplies on hand on May 31, $4,000 Depreciation for the current year, $14,000 Accrued salaries on May 31: Sales salaries, $7.000 Office salaries, $6,600 Total accrued salaries: $13,600. The adjustment for customer refunds and allowances is $60,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal. B. Post the adjusting entries. Add the appropriate posting reference to the journal. 7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank. *Refer to the chart of accounts for the exact wording of the account titles. CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. L 114 B Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Prepaid Insurance 118 Store Supplies LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable EQUITY CHART OF ACCOUNTS 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Journal Note: Scroll down for pages 21 and 22 of the journal. 1 2 3 1. B. Journalize the transactions for May, starting on Page 20 of the journal.* 2. Add the appropriate posting reference to the journal. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.* 6. B. Add the appropriate posting reference to the journal. *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 4 DATE DESCRIPTION JOURNAL POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION ASSETS PAGE 20 LIABILITIES EQUITY Ledger 1. Download the attached SPREADSHEET and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. A. Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the date column. Write Balance in the item section, and enter "X" in the Posting Reference column. 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. 6. B. Post the adjusting entries. Ch. 6 Comprehensive Problem 2, Part 2 Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. During May, the last month of the fiscal year, transactions were completed. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance. Required: 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owner's equity, and a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner's equity, and a balance sheet.* < 9. A. Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal. 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. *For guidance in completing the financial statements, be sure to read the instructions above each statement carefully. Chart of Accounts ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory LIABILITIES 210 Accounts Payable 211 Customer Refunds Payable 212 Salaries Payable CHART OF ACCOUNTS 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment EQUITY 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing Palisade Creek Co. General Ledger REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 539 Miscellaneous Administrative Expense Statement of Owner's Equity Income Statement 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. 1 2 Palisade Creek Co. Income Statement (Label) Statement of Owner's Equity 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a statement of owner's equity. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare a statement of owner's equity. Be sure to complete the statement heading. Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts that represent reduction as negative numbers using a minus sign. 1 2 Palisade Creek Co. Statement of Owner's Equity (Label)