Palisade Creek Co. is a merchandising business that uses the perpetual inventory system, accounting homework help

Anonymous
timer Asked: Aug 25th, 2017
account_balance_wallet $10

Question description

Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows:

110Cash$ 83,600
112Accounts Receivable233,900
115Merchandise Inventory624,400
116Estimated Returns Inventory28,000
117Prepaid Insurance16,800
118Store Supplies11,400
123Store Equipment569,500
124Accumulated Depreciation-Store Equipment56,700
210Accounts Payable96,600
211Salaries Payable
212Customers Refunds Payable50,000
310Common Stock100,000
311Retained Earnings585,300
312Dividends135,000
313Income Summary
410Sales5,069,000
510Cost of Merchandise Sold2,823,000
520Sales Salaries Expense664,800
521Advertising Expense281,000
522Depreciation Expense
523Store Supplies Expense
529Miscellaneous Selling Expense12,600
530Office Salaries Expense382,100
531Rent Expense83,700
532Insurance Expense
539Miscellaneous Administrative Expense7,800

During May, the last month of the fiscal year, the following transactions were completed:

Record the following transactions on page 20 of the journal. Refer to the Chart of Accounts for exact wording of account titles.

May1Paid rent for May, $5,000.
 3Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
 4Paid freight on purchase of May 3, $600.
 6Sold 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.
 7Received $22,300 cash from Halstad Co. on account.
 10Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.
 13Paid for merchandise purchased on May 3.
 15Paid advertising expense for last half of May, $11,000.
 16Received cash from sale of May 6.
 19Purchased merchandise for cash, $18,700.
 19Paid $33,450 to Buttons Co. on account.
 20Paid 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.

Record the following transactions on page 21 of the journal. Refer to the Chart of Accounts for exact wording of account titles.

May20Sold 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.
 21For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.
 21Received $42,900 cash from Gee Co. on account.
 21Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.
 24Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.
 26Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800.
 28Paid sales salaries of $56,000 and office salaries of $29,000.
 29Purchased store supplies for cash, $2,400.
 30Sold 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.
 30Received cash from sale of May 20 plus freight paid on May 21.
 31Paid for purchase of May 21, less return of May 24.
 Required:
1.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. WriteBalance in the item section, and place a check mark (√) in the Posting Reference column. Journalize the transactions for July, 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.
3.Prepare an unadjusted trial balance.
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, $570,000
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 returns and allowances is $60,000 for sales and $35,000 for cost of merchandise sold.
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.
6.
A.Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.*
B.Post the adjusting entries.
7.Prepare an adjusted trial balance.
8.

Tutor Answer

elkaydor
School: UC Berkeley

Hi, I have attached the completed work in an Excel file below. Kindly let me know if it is satisfactory or if you need me to work on it some more. Thanks.

Palisade Creek Co. Account Journal Entries May 31, 2016
Date
Account
1-May Rent expense
Cash
3-May Merchandise inventory
Accounts payable
4-May Merchandise inventory (Freight)
Cash
6-May Accounts receivable
Sales

Debit
Credit
5.000,00
5.000,00
36.000,00
36.000,00
600,00
600,00
68.500,00
68.500,00

Cost of goods sold
Merchandise inventory

41.000,00

7-May Cash
Accounts receivable - halstad

22.300,00

10-May Cash
Sales
Cost of goods sold
Merchandise inventory

41.000,00

22.300,00
54.000,00
54.000,00
32.000,00
32.000,00

13-May Accounts payable - Martin Co.
Cash
Merchandise inventory

36.000,00

14-May Sales returns and allowances
Accounts receivable

13.500,00

Merchandise inventory
Cost of goods sold

35.280,00
720,00

13.500,00
8.000,00
8.000,00

15-May Advertising expense
Cash

11.000,00

16-May Cash
Sales discount
Accounts receivable

53.900,00
1.100,00

19-May Merchandise inventory
Cash

18.700,00

11.000,00

55.000,00

18.700,00

19-May Accounts payable - Buttons Co.
Cash
20-May Accounts receivable
Sales
Cost of goods sold
Merchandise inventory

33.450,00
33.450,00
110.000,00
110.000,00
70.000,00
70.000,00

21-May Accounts receivable
Cash

2.300,00

21-May Cash
Accounts receivable

42.900,00

21-May Merchandise inventory
Accounts payable

88.000,00

24-May Accounts payable
Merchandise inventory

5.000,00

26-May Sales returns and allowances
Cash

7.500,00

2.300,00

42.900,00

88.000,00

5.000,00

7.500,00

Merchandise inventory
Cost of goods sold

4.800,00

28-May Sales salaries expense
Office salaries expense
Cash

56.000,00
29.000,00

29-May Store supplies
Cash

4.800,00

85.000,00
2.400,00
2.400,00

30-May Accounts receivable - Turner Co.
Sales

78.750,00

Cost of goods sold
Merchandise inventory

47.000,00

30-May Cash
Sales discount
Accounts receivable
31-May Accounts payable
Merchandise Inventory
Cash

7...

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Anonymous
Goes above and beyond expectations !

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