Requirements: 1) Journal Entries for the whole month of May 2) Unadjusted Trial Balance 3) Adjusted Trial Balance

Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2018, are a as follows: Assume all accounts have normal balances 110 Cash S 83,600 112 233,900 115 Accounts receivable Inventory Estimated returns inventory 116 624,400 28,000 117 Prepaid insurance 118 Store supplies 16,800 11,400 569,500 123 124 56,700 210 Store equipment Accumulated depreciation-store equipment Accounts payable Salaries payable Customers refunds payable 96,600 211 212 50,000 310 Common stock 100,000 211 Retained earnings 525 200 310 Common stock 100,000 311 Retained earnings 585,300 312 Dividends 135,000 313 Income summary 410 Sales 5,069,000 510 Cost of goods sold 2,823,000 520 Sales salaries expense 664,800 521 Advertising expense 281,000 522 Depreciation expense 523 Store supplies expense 529 Miscellaneous selling expense 12,600 530 Office salaries expense 382,100 531 Rent expense 83.700 532 Insurance expense 539 Miscellaneous administrative expense 7,800 May 1 Paid rent for May, $5,000 3 Purchased merchandise on account from Martin Co., terms 2/10, 1/30, FOB shipping point, $36,000. 4 Paid freight on purchase of May 3, $600. 6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the goods sold was $41,000. 7 Received $22,300 cash from Halstad Co. on account. 10 Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000. 13 Paid for merchandise purchased on May 3. 15 Paid advertising expense for last half of May, $11,000. 16 Received cash from sale of May 6. 19 Purchased merchandise for cash, $18,700. 19 Paid $33,450 to Buttons Co. on account. 20 Paid Korman Co, a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000 May 20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the goods sold was $70,000. For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. 21 21 Received $42,900 cash from Gee Co. on account. 21 Purchased merchandise on account from Osterman Co. terms 1/10, n/30, FOB destination, $88,000 24 Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000 26 Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. 28 Paid sales salaries of $56,000 and office salaries of $29,000. 29 30 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 goods sold was $47,000. 30 Received cash from sale of May 20 plus freight paid on May 21. Paid for purchase of May 21, less return of May 24. 31 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). A Inventory on May 31, $570,000 B. Insurance expired during the year, $12,000 C. Store supplies on hand on May 31, $4,000 D. Depreciation for the current year, $14,000 E. Accrued salaries on May 31: Sales salaries, $7,000 Office salaries, $6,600 Total accrued salaries. $13,600 E The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold. * UNADJUSTED TRIAL BALANCE May 31, 2018 DEBIT CREDIT ACCOUNT TITLE 1 Cash 2 Accounts Receivable 3 Inventory 4 Estimated Returns Inventory 5 Prepaid Insurance 6 Store Supplies 7 Store Equipment VO 8 Accumulated Depreciation Store Equipment 9 Accounts Payable 10 Salaries Payable 11 Customers Refunds Payable 12 Common Stock 13 Retained Earnings 14 Dividends 15 Sales 16 Cost of Goods Sold 17 Sales Salaries Expense 18 Advertising Expense 19 Depreciation Expense 20 Store Supplies Expense 21 Miscellaneous Selling Expense 22 Office Salaries Expense 23 Rent Expense 24 Insurance Expense 25 Miscellaneous Administrative Expense 26 Totals