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sapphirecod7Lv1
28 Sep 2019
Palisade Creek Co. is a merchandising business that uses theperpetual inventory system. The account balances for Palisade CreekCo. as of May 1, 2016 (unless otherwise indicated), are asfollows:
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 569,500 124 Accumulated Depreciation-Store Equipment 56,700 210 Accounts Payable 96,600 211 Salaries Payable â 212 Customers Refunds Payable 50,000 310 Lynn Tolley, Capital, June 1, 2015 685,300 311 Lynn Tolley, Drawing 135,000 312 Income Summary â 410 Sales 5,069,000 510 Cost of Merchandise Sold 2,823,000 520 Sales Salaries Expense 664,800 521 Advertising Expense 281,000 522 Depreciation Expense â 523 Store Supplies Expense â 529 Miscellaneous Selling Expense 12,600 530 Office Salaries Expense 382,100 531 Rent Expense 83,700 532 Insurance Expense â 539 Miscellaneous Administrative Expense 7,800
During May, the last month of the fiscal year, the followingtransactions were completed:
Record the following transactions on page 20 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.
May 1 Paid rent for May, $5,000. 3 Purchased merchandise on account from Martin Co., terms 2/10,n/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 merchandise 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 merchandisesold 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 returnedmerchandise from sale of May 6. The invoice amount of the returnedmerchandise was $13,500 and the cost of the returned merchandisewas $8,000.
Record the following transactions on page 21 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.
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 For the convenience of Crescent Co., paid freight on sale ofMay 20, $2,300. 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, receivinga credit memo from the seller for $5,000. 26 Refunded cash on sales made for cash, $7,500. The cost of themerchandise returned was $4,800. 28 Paid sales salaries of $56,000 and office salaries of$29,000. 29 Purchased store supplies for cash, $2,400. 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. 30 Received cash from sale of May 20 plus freight paid on May21. 31 Paid for purchase of May 21, less return of May 24.
Required: 1. Download the spreadsheet in the Ledger panel and save the Excelfile to your computer. Use the spreadsheet to post the Maytransactions from the journal to a ledger of four-column accounts.Be sure to save your work in Excel as it will be used to completethe following steps in Part 1 of this problem as well as steps inPart 2 of this problem. Your input into the spreadsheet will not beincluded in your grade in CengageNOW on this problem. A. Enter the May 1 balances of each of the accounts in theappropriate balance column of a four-column account. Enter May 1 inthe date column. Write Balance in the item section, and enter âXâin the Posting Reference column. B. Journalize the transactions for May, starting on Page 20 of thejournal.*
2. Post the journal to the general ledger, extending the month-endbalances to the appropriate balance columns after all posting iscompleted. In this problem, you are not required to update or postto the accounts receivable and accounts payable subsidiary ledgers.Add the appropriate posting reference to the journal. 3. Prepare an unadjusted trial balance. Accounts with zerobalances can be left blank. 4. At the end of May, the following adjustment data wereassembled. 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 $60,000for sales and $35,000 for cost of merchandise sold.
5. (Optional) On your own paper or spreadsheet, enter theunadjusted trial balance on a 10-column end-of-period spreadsheet(work sheet), and complete the spreadsheet. Find a blankend-of-period work sheet in the Excel spreadsheet you previouslydownloaded. 6. A. Journalize the adjusting entries. Record the adjusting entrieson Page 22 of the journal.* B. Post the adjusting entries. Add the appropriate postingreference to the journal.
7. Prepare an adjusted trial balance. Accounts with zero balancescan be left blank. * Refer to the Chart of Accounts for exact wording of accounttitles.
Palisade Creek Co. is a merchandising business that uses theperpetual inventory system. The account balances for Palisade CreekCo. as of May 1, 2016 (unless otherwise indicated), are asfollows:
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 |
124 | Accumulated Depreciation-Store Equipment | 56,700 |
210 | Accounts Payable | 96,600 |
211 | Salaries Payable | â |
212 | Customers Refunds Payable | 50,000 |
310 | Lynn Tolley, Capital, June 1, 2015 | 685,300 |
311 | Lynn Tolley, Drawing | 135,000 |
312 | Income Summary | â |
410 | Sales | 5,069,000 |
510 | Cost of Merchandise Sold | 2,823,000 |
520 | Sales Salaries Expense | 664,800 |
521 | Advertising Expense | 281,000 |
522 | Depreciation Expense | â |
523 | Store Supplies Expense | â |
529 | Miscellaneous Selling Expense | 12,600 |
530 | Office Salaries Expense | 382,100 |
531 | Rent Expense | 83,700 |
532 | Insurance Expense | â |
539 | Miscellaneous Administrative Expense | 7,800 |
During May, the last month of the fiscal year, the followingtransactions were completed:
Record the following transactions on page 20 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.
May | 1 | Paid rent for May, $5,000. |
3 | Purchased merchandise on account from Martin Co., terms 2/10,n/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 merchandise 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 merchandisesold 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 returnedmerchandise from sale of May 6. The invoice amount of the returnedmerchandise was $13,500 and the cost of the returned merchandisewas $8,000. |
Record the following transactions on page 21 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.
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 | For the convenience of Crescent Co., paid freight on sale ofMay 20, $2,300. | |
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, receivinga credit memo from the seller for $5,000. | |
26 | Refunded cash on sales made for cash, $7,500. The cost of themerchandise returned was $4,800. | |
28 | Paid sales salaries of $56,000 and office salaries of$29,000. | |
29 | Purchased store supplies for cash, $2,400. | |
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. | |
30 | Received cash from sale of May 20 plus freight paid on May21. | |
31 | Paid for purchase of May 21, less return of May 24. |
Required: | |||||||||||||||||||
1. | Download the spreadsheet in the Ledger panel and save the Excelfile to your computer. Use the spreadsheet to post the Maytransactions from the journal to a ledger of four-column accounts.Be sure to save your work in Excel as it will be used to completethe following steps in Part 1 of this problem as well as steps inPart 2 of this problem. Your input into the spreadsheet will not beincluded in your grade in CengageNOW on this problem.
| ||||||||||||||||||
2. | Post the journal to the general ledger, extending the month-endbalances to the appropriate balance columns after all posting iscompleted. In this problem, you are not required to update or postto the accounts receivable and accounts payable subsidiary ledgers.Add the appropriate posting reference to the journal. | ||||||||||||||||||
3. | Prepare an unadjusted trial balance. Accounts with zerobalances can be left blank. | ||||||||||||||||||
4. | At the end of May, the following adjustment data wereassembled. Analyze and use these data to complete (5) and (6).
| ||||||||||||||||||
5. | (Optional) On your own paper or spreadsheet, enter theunadjusted trial balance on a 10-column end-of-period spreadsheet(work sheet), and complete the spreadsheet. Find a blankend-of-period work sheet in the Excel spreadsheet you previouslydownloaded. | ||||||||||||||||||
6. |
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7. | Prepare an adjusted trial balance. Accounts with zero balancescan be left blank.
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dcht24111997Lv10
16 Apr 2023
Beverley SmithLv2
28 Sep 2019
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