Question

Please help me with part #8. I provided parts 1-7. (Part 5 is optional)

Comprehensive Problem 2 Part 1 and Part 2 Palisade Creek Co, is a merchandising business that uses the perpetual inventory system. The account balances for Palsade 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 116 Estimated Returns Inventory 624,400 28,000 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 569,500 123 Store Equipment Accumulated Depreciation-Store 124 Equipment 56,700 210 Accounts Payable 96,600 211 Oustomer Refunds Payable s0,000 212 Salaries Payable 310 Lynm Toley, Capital, June 1, 2018 311 Lyn Toley, Drawing 685,300 135,000 410 Sales 5,069,000 2,823,000 510 Cost of Merchandse Sold 520 Sales Salaries Expense 664,800 s21 Advertising Expense 281,000 $22 Depreciation Expense s23 Store Supplies Exspense 529 Miscellaneous Seling Expense 12,600 530 omce Salaries Expense 382,100 $31 Rent Expense 532 Insurance Expense 83,700 539 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.

Answer 1

Palisade Creek Journal Enteries Date Particulars 1.5.2016 Rent Expense a/c To Cash (Rent paid in cash) Dr. Debit in $ Credit In $ 5000 K 5000 36000 3.5.2016 Inventory a/c Dr. To Accounts Payable (Purchased inventory on account) 36000 4.5.2016 Inventory a/c Dr. To Cash (Paid Freight expense in cash) 600 Dr. 68500 6.5.2016 Accounts Receivable a/c To Sales (Sales made on account) 68500 41000 Cost of goods sold a/c To Inventory (Cost of goods sold recorded) 41000 223001 7.5.2016 Cash a/c Dr. To Accounts Receivable (Cash received from debtors) 22300 Dr. 54000 10.5.2016 Cash a/c To Sales (Sales made on account) 54000 32000 Cost of goods sold a/c Dr. To Inventory JiCost of goods sold recorded) 32000 36000 720 13.5.2016 Accounts Payable a/c Dr. To Inventory To Cash (Accounts Payable paid off for May 3 purchase) 36000 x 2% = 720 35280

Date Particulars 15.5.2016 Advertising Expense a/c Dr. To Cash (Advertising Expense paid) Debit in Credit In $ 11000 11000 671301 1370 16.5.2016 |Cash a/c Dr. Sales Discount a/c Dr. To Accounts Receivable (Received cash from debtors for May 6 Sales) 68500 18700 19.5.2016 Inventory a/c Dr. To Cash (Purchased inventory for cash) 18700 33450 19.5.2016 Accounts Payable a/c Dr. To Cash (Accounts Payable paid) 33450 Dr. 13230 20.5.2016 Sales Return a/c To Cash (Sales return reorded) 13230 8000 Inventory a/c Dr. To Cost of goods sold (Inventory returned recorded) 8000 Dr. 110000 20.5.2016 Accounts Receivable a/c To Sales (Sales made on account) 110000 70000 Cost of goods sold a/c Dr. To Inventory (Cost of goods sold recorded) 70000

Date Particulars 21.5.2016 Accounts Receivable a/c Dr. To Cash (Freight paid on behalf of client) Debit in s Credit In $ 2300 2300 Dr. 42900 21.5.2016 Cash a/c To Accounts Receivable (Cash received from debtors) 42900 88000 21.5.2016 Inventory a/c Dr. To Accounts Payable (Purchased inventory on account) 88000 Dr. 5000 24.5.2016 Accounts Payable a/c To Inventory (Inventory returned) 5000 Dr. 7500 26.5.2016 Sales Return a/c To Cash (Sales return recorded) 7500 48001 Inventory a/c Dr. To Cost of goods sold (Inventory returned recorded) 4800 56000 29000 28.5.2016 Sales Salaries Expense a/c Dr. Office Salaries Expense a/c Dr. To Cash (Salaries paid in cash) 85000

Date Particulars 29.5.2016 Store Supplies a/c Dr. To Cash (Supplies purchased for cash) Debit in credit in $ 2400 2400 Dr. 78750 30.5.2016 Accounts Receivable a/c To Sales (Sales made on account) 78750 47000 Cost of goods sold a/c Dr. To Inventory (Cost of goods sold recorded) 47000 111200 1100 30.5.2016 Cash a/c Dr. Sales Discount a/c Dr. To Accounts Receivable (Received cash from debtors for May 6 Sales) 110000 x 1% = 1100; 110000 + 2300 = 112300 112300 83000 31.5.2016 Accounts Payable a/c Dr. To Inventory To Cash (Accounts Payable paid off for May 3 purchase) 83000 x 1% = 830 830 82170

Adjusting Enteries Date Particulars 31.5.2016 Cost of goods sold a/c To Inventory (Inventory value declined) Dr. Debit in $ Credit in $ 13950 13950 Dr. 12000 31.5.2016 Insurance Expense a/c To Prepaid Insurance (Insurance expired) 12000 Dr. 9800 31.5.2016 Supplies Expense a/c To Store Supplies (Supplies Expensed) 9800 14000 31.5.2016 Depreciation Expense - Store Equip a/c Dr. To Accum. Depre-Store Equip (Depreciation Charged to Equipemnt) 14000 Dr. Dr. 7000 6000 31.5.2016 Sales Salaries Expense a/c Office Salaries Expense a/c To Salaries Payable (Salaries accrued) 13000 60000 31.5.2016 Sales Return a/c Dr. To Accounts Receivable (Sales return recorded) 60000 35000 Inventory a/c Dr. To Cost of goods sold (Inventory returned recorded) 35000

Worksheet For the period ending 31.5.2016 Unadjusted Adjustment Adjusted Debit in $ Credit In $ Debit in $ Credit In $ Debit in $ Credit In $ 84500 84500 247450 60000 187450 583950 13950 570000 28000 35000 63000 16800 12000 4800 13800 9800 4000 569500 569500 56700 14000 70700 63150 63150 13000 13000 50000 50000 685300 685300 135000 135000 Particulars Cash Accounts Receivable Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depre-Store Equip. Accounts Payable Salaries Payable Customer Refunds Payable Lynn Tolley, Capital Lynn Tolley, Drawing Income Summary Sales Sales Return Sales Discount Cost of goods sold Sales Salaries Expense Office Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense Rent Expense Insurance Expense Miscellaneous administrative Expense Totals 5380250 5380250 60000 20730 2470 3000200 720800 411100 292000 -21050 7000 6000 14000 9800 80730 2470 2979150 727800 417100 292000 14000 9800 12600 88700 12000 7800 6262400 12600 88700 12000 7800 6235400 6235400 122750 122750 6262400

Statement of Income For the period ending 31.5.2016 Sales Sales Return Sales Discount Net Sales Cost of goods sold Gross Margin 5380250 -80730 -2470 5297050 -2979150 2317900 Selling Expense: Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense 727800 292000 14000 9800 12600 1056200 Administrative Expense: Office Salaries Expense Rent Expense Insurance Expense Miscellaneous administrative Expense Net Income 417100 88700 12000 7800 525600 736100 Statement of Owners Equity For the period ending 31.5.2016 Lynn Tolley, Capital Net Income 685300 736100 1421400 - 135000 1286400 Less:Lynn Tolley, Drawing

Amounts in $ Amounts in $ Balance sheet As at 31.8.2017 Assets Current Assets Cash Accounts Receivable Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Amounts in $ Amounts in $ Liabilities Current Liabilities 84500 Accounts Payable 187450 Salaries Payable 570000 Customer Refunds Payable 63000 4800 4000 913750 63150 13000 50000 126150 1286400 Non Current Assets Store Equipment Accumulated Depre - Store Eq Total Assets 569500 -70700 Owners Capital Lynn Tolley, Capital 498800 1412550 Total Liabilities & Equity 1412550

Closing Enteries Date Particulars Debit in $ Credit in $ 31.5.2016 Income Summary a/c Dr. 4644150 To Sales Return 80730 To Sales Discount 2470 To Cost of goods sold 2979150 To Sales Salaries Expense 727800 To Office Salaries Expense 417100 To Advertising Expense 292000 To Depreciation Expense 14000 To Store Supplies Expense 9800 To Miscellaneous Selling Expense 12600 To Rent Expense 88700 To Insurance Expense 12000 To Miscellaneous administrative Expense 7800 (Expense accounts closed) 5380250 31.5.2016 Sales a/c Dr. To Income Summary (Revenue accounts closed) 5380250 736100 31.5.2016 Income Summary a/c Dr. To Lynn Tolley, Capital (Profit transferref to Capital account) 736100 135000 31.5.2016 Lynn Tolley, Capital a/c Dr. To Lynn Tolley, Drawing (Drawings charged to Capital) 135000