Sorry about all the screenshot uploads this is the first sheet that I have done.
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| Palisade Creek Co. |
| Unadjusted Trial balance |
| May 31,2019 |
| Account title | Debit | Credit |
| Cash | $193,400 | |
| Accounts Receivable | $136,975 | |
| Merchandise Inventory | $583,950 | |
| Estimated Returns Inventory | $15,200 | |
| Prepaid Insurance | $16,800 | |
| Store Supplies | $11,400 | |
| Store Equipment | $569,500 | |
| Accumulated DepreciationStore Equipment | | $56,700 |
| Accounts Payable | | $63,150 |
| Customer Refunds Payable | | $29,270 |
| Salaries Payable | | |
| Lynn Tolley, Capital | | $685,300 |
| Lynn Tolley, Drawing | $135,000 | |
| Sales | | $5,376,205 |
| Cost of Merchandise Sold | $3,013,000 | |
| Sales Salaries Expense | $720,800 | |
| Advertising Expense | $292,000 | |
| Depreciation Expense | | |
| Store Supplies Expense | $2,400 | |
| Miscellaneous Selling Expense | $12,600 | |
| Office Salaries Expense | $411,100 | |
| Rent Expense | $88,700 | |
| Insurance Expense | | |
| Miscellaneous Administrative Expense | $7,800 | |
| Total | $6,210,625 | $6,210,625 |
I found that this sheet was not completely correct, but it is what I have based off of the first sheet (this sheet is completely correct)
| Palisade Creek Co. Unadjusted Trial Balance May 31, 2019 |
| | Debit Balances | Credit Balances |
| Cash | | |
| Accounts Receivable | | |
| Merchandise Inventory | | |
| Estimated Returns Inventory | | |
| Prepaid Insurance | | |
| Store Supplies | | |
| Store Equipment | | |
| Accumulated DepreciationStore Equipment | | |
| Accounts Payable | | |
| Customer Refunds Payable | | |
| Salaries Payable | | |
| Lynn Tolley, Capital | | |
| Lynn Tolley, Drawing | | |
| Sales | | |
| Cost of Merchandise Sold | | |
| Sales Salaries Expense | | |
| Advertising Expense | | |
| Depreciation Expense | | |
| Store Supplies Expense | | |
| Miscellaneous Selling Expense | | |
| Office Salaries Expense | | |
| Rent Expense | | |
| Insurance Expense | | |
| Miscellaneous Administrative Expense | | |
| | | |
Comprehensive Problem 2 Part 4 and 6:
Note: You must complete parts 1, 2 and 3 before attempting to complete part 4 and part 6. Part 5 is an optional work sheet.
4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete Part 6.
| a. | Merchandise 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 | 13,600 |
| f. | The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of merchandise sold. |
6. Journalize the adjusting entries. For a compound transaction, if an amount box does not require an entry, leave it blank. Post the adjusting entries to the attached spreadsheet you used in parts 1 and 2.
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Part 1 and Part 2: Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows: 110 Cash $83,600 112 Accounts Receivable 233,900 115 Merchandise Inventory 624,400 116 Estimated Returns Inventory 28,000 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 123 Store Equipment 569,500 56,700 124 Accumulated Depreciation-Store Equipment 210 Accounts Payable 211 Customer Refunds Payable 96,600 50,000 212 Salaries Payable 310 Lynn Tolley, Capital, June 1, 2018 685,300 311 Lynn Tolley, Drawing 135,000 410 Sales 5,069,000 510 Cost of Merchandise Sold 2,823,000 664,800 520 Sales Salaries Expense 521 Advertising Expense 281,000 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12,600 530 Office Salaries Expense 382,100 531 Rent Expense 83,700 532 Insurance Expense 539 Miscellaneous Administrative Expense 7,800 Part 1: Using the attached spreadsheet, enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (V) in the Posting Reference column. Journalize the transactions for May, the last month of the fiscal year, below. Part 2: Post the journal to the general ledger you created in Part 1, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0" May 1: Paid rent for May, $5,000. Description Post. Ref. Debit Credit Rent Expense 5,000 Cash 5,000 May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Post. Description Debit Credit Ref. Merchandise Inventory 35,280 Accounts Payable-Martin Co. 35,280 May 4: Paid freight on purchase of May 3, $600. Description Post. Ref. Debit Credit Merchandise Inventory 600 Cash 600 May 6: Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000. Description Post. Ref. Debit Credit Accounts Receivable-Korman Co. 67,130 Sales 67,130 Cost of Merchandise Sold 41,000 Merchandise Inventory 41,000 May 7: Received $22,300 cash from Halstad Co. on account. Post. Description Debit Credit Ref. Cash 22,300 Accounts Receivable-Halstad Co. 22,300 May 10: Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. Description Post. Ref. Debit Credit Cash 54,000 Sales 54,000 Cost of Merchandise Sold 32,000 Merchandise Inventory 32,000 May 13: Paid for merchandise purchased on May 3. Description Post. Ref. Debit Credit Accounts Payable-Martin Co 35,280 Cash 35,280 May 15: Paid advertising expense for last half of May, $11,000. Description Post. Ref. Debit Credit Advertising Expense 11,000 Cash 11,000 May 16: Received cash from sale of May 6. Description Post. * Ref. Debit Credit Cash 67,130 Accounts Receivable-Korman Co. 67,130 May 19: Purchased merchandise for cash, $18,700. Description Post. Ref. Debit Credit Merchandise Inventory 18,700 Cash 18,700 May 19: Paid $33,450 to Buttons Co. on account. Description Post. Ref. Credit Debit 33,450 Accounts Payable-Buttons Co. Cash 33,450 May 20: Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned returned merchandise was $8,000. Description Post. Ref. Debit Credit Customers Refunds Payable 13,230 Cash 13,230 Merchandise Inventory 8,000 Estimated Returns Inventory 8,000 Description Post. Ref. Credit Debit 18,700 Merchandise Inventory Cash 18,700 May 19: Paid $33,450 to Buttons Co. on account. Description Post. Ref. Credit Debit 33,450 Accounts Payable-Buttons Co. Cash 33,450 May 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. Post. Description Debit Credit Ref. Customers Refunds Payable 13,230 Cash 13,230 Merchandise Inventory 8,000 Estimated Returns Inventory 8,000 May 20: Sold merchandise on account to Crescent Co., terms 1/10, 1/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000. Post. Description Debit Credit Ref. Accounts Receivable-Crescent Co. 108,900 Sales 108,900 Cost of Merchandise Sold 70,000 Merchandise Inventory 70,000 May 21: For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. Post. Description Debit Credit u Ref. Accounts Receivable-Crescent Co. 2,300 Cash 2,300 May 21: Received $42,900 cash from Gee Co. on account. Description Post. * Ref. Debit Credit Cash 42.900 Accounts Receivable-Gee Co. 42,900 May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. Post. Description Ref. Debit Credit Merchandise Inventory 87,120 Accounts Payable-Osterman Co. 87,120 May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Description Post. Ref. Debit Credit Accounts Payable-Osterman Co. 4,950 Merchandise Inventory 4,950 May 26: Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. Description Post. Ref. Debit Credit Customers Refunds Payable 7,500 Cash 7,500 Merchandise Inventory 4,800 Estimated Returns Inventory 4,800 May 28: Paid sales salaries of $56,000 and office salaries of $29,000. Description Post. Ref. Debit Credit Sales Salaries Expense 56,000 Office Salaries Expense 29,000 Cash 85,000 May 29: Purchased store supplies for cash, $2,400. Description Post. Ref. Debit Credit Store Supplies 2,400 Cash 2,400 May 30: Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000. Description Post. Ref. Debit Credit Accounts Receivable-Turner Co. 77,175 Sales 77,175 Cost of Merchandise Sold 47,000 Merchandise Inventory 47,000 May 30: Received cash from sale of May 20 plus freight paid on May 21. Description Post. Ref. Debit Credit Cash 111,200 Accounts Receivable-Crescent Co. 111,200 May 31: Paid for purchase of May 21, less return of May 24. Description Post. Ref. Debit Credit Accounts Payable-Osterman Co. 82,170 Comprehensive Problem 2 Part 5: Optional work sheet Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet using the following adjustment data. a. Merchandise 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 13,600 f. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of merchandise sold. If an amount box does not require an entry, leave it blank. Palisade Creek Co. End-of-Period Spreadsheet (Work Sheet) Unadjusted Trial Balance Debit Credit For the Year Ended May 31, 2019 Adjustments Adjusted Trial Balance Debit Credit Debit Credit Income Statement Balance Sheet Debit Credit Account Title Debit Credit Cash Accounts Receivable Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accum. Depr.-Store Equip. Accounts Payable Customer Refunds Payable Salaries Payable Lynn Tolley, Capital Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Admin. Expense Net Income Part 1 and Part 2: Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows: 110 Cash $83,600 112 Accounts Receivable 233,900 115 Merchandise Inventory 624,400 116 Estimated Returns Inventory 28,000 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 123 Store Equipment 569,500 56,700 124 Accumulated Depreciation-Store Equipment 210 Accounts Payable 211 Customer Refunds Payable 96,600 50,000 212 Salaries Payable 310 Lynn Tolley, Capital, June 1, 2018 685,300 311 Lynn Tolley, Drawing 135,000 410 Sales 5,069,000 510 Cost of Merchandise Sold 2,823,000 664,800 520 Sales Salaries Expense 521 Advertising Expense 281,000 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12,600 530 Office Salaries Expense 382,100 531 Rent Expense 83,700 532 Insurance Expense 539 Miscellaneous Administrative Expense 7,800 Part 1: Using the attached spreadsheet, enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (V) in the Posting Reference column. Journalize the transactions for May, the last month of the fiscal year, below. Part 2: Post the journal to the general ledger you created in Part 1, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0" May 1: Paid rent for May, $5,000. Description Post. Ref. Debit Credit Rent Expense 5,000 Cash 5,000 May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Post. Description Debit Credit Ref. Merchandise Inventory 35,280 Accounts Payable-Martin Co. 35,280 May 4: Paid freight on purchase of May 3, $600. Description Post. Ref. Debit Credit Merchandise Inventory 600 Cash 600 May 6: Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000. Description Post. Ref. Debit Credit Accounts Receivable-Korman Co. 67,130 Sales 67,130 Cost of Merchandise Sold 41,000 Merchandise Inventory 41,000 May 7: Received $22,300 cash from Halstad Co. on account. Post. Description Debit Credit Ref. Cash 22,300 Accounts Receivable-Halstad Co. 22,300 May 10: Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. Description Post. Ref. Debit Credit Cash 54,000 Sales 54,000 Cost of Merchandise Sold 32,000 Merchandise Inventory 32,000 May 13: Paid for merchandise purchased on May 3. Description Post. Ref. Debit Credit Accounts Payable-Martin Co 35,280 Cash 35,280 May 15: Paid advertising expense for last half of May, $11,000. Description Post. Ref. Debit Credit Advertising Expense 11,000 Cash 11,000 May 16: Received cash from sale of May 6. Description Post. * Ref. Debit Credit Cash 67,130 Accounts Receivable-Korman Co. 67,130 May 19: Purchased merchandise for cash, $18,700. Description Post. Ref. Debit Credit Merchandise Inventory 18,700 Cash 18,700 May 19: Paid $33,450 to Buttons Co. on account. Description Post. Ref. Credit Debit 33,450 Accounts Payable-Buttons Co. Cash 33,450 May 20: Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned returned merchandise was $8,000. Description Post. Ref. Debit Credit Customers Refunds Payable 13,230 Cash 13,230 Merchandise Inventory 8,000 Estimated Returns Inventory 8,000 Description Post. Ref. Credit Debit 18,700 Merchandise Inventory Cash 18,700 May 19: Paid $33,450 to Buttons Co. on account. Description Post. Ref. Credit Debit 33,450 Accounts Payable-Buttons Co. Cash 33,450 May 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. Post. Description Debit Credit Ref. Customers Refunds Payable 13,230 Cash 13,230 Merchandise Inventory 8,000 Estimated Returns Inventory 8,000 May 20: Sold merchandise on account to Crescent Co., terms 1/10, 1/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000. Post. Description Debit Credit Ref. Accounts Receivable-Crescent Co. 108,900 Sales 108,900 Cost of Merchandise Sold 70,000 Merchandise Inventory 70,000 May 21: For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. Post. Description Debit Credit u Ref. Accounts Receivable-Crescent Co. 2,300 Cash 2,300 May 21: Received $42,900 cash from Gee Co. on account. Description Post. * Ref. Debit Credit Cash 42.900 Accounts Receivable-Gee Co. 42,900 May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. Post. Description Ref. Debit Credit Merchandise Inventory 87,120 Accounts Payable-Osterman Co. 87,120 May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. Description Post. Ref. Debit Credit Accounts Payable-Osterman Co. 4,950 Merchandise Inventory 4,950 May 26: Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. Description Post. Ref. Debit Credit Customers Refunds Payable 7,500 Cash 7,500 Merchandise Inventory 4,800 Estimated Returns Inventory 4,800 May 28: Paid sales salaries of $56,000 and office salaries of $29,000. Description Post. Ref. Debit Credit Sales Salaries Expense 56,000 Office Salaries Expense 29,000 Cash 85,000 May 29: Purchased store supplies for cash, $2,400. Description Post. Ref. Debit Credit Store Supplies 2,400 Cash 2,400 May 30: Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000. Description Post. Ref. Debit Credit Accounts Receivable-Turner Co. 77,175 Sales 77,175 Cost of Merchandise Sold 47,000 Merchandise Inventory 47,000 May 30: Received cash from sale of May 20 plus freight paid on May 21. Description Post. Ref. Debit Credit Cash 111,200 Accounts Receivable-Crescent Co. 111,200 May 31: Paid for purchase of May 21, less return of May 24. Description Post. Ref. Debit Credit Accounts Payable-Osterman Co. 82,170 Comprehensive Problem 2 Part 5: Optional work sheet Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet using the following adjustment data. a. Merchandise 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 13,600 f. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of merchandise sold. If an amount box does not require an entry, leave it blank. Palisade Creek Co. End-of-Period Spreadsheet (Work Sheet) Unadjusted Trial Balance Debit Credit For the Year Ended May 31, 2019 Adjustments Adjusted Trial Balance Debit Credit Debit Credit Income Statement Balance Sheet Debit Credit Account Title Debit Credit Cash Accounts Receivable Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accum. Depr.-Store Equip. Accounts Payable Customer Refunds Payable Salaries Payable Lynn Tolley, Capital Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Admin. Expense Net Income
