Question
In: Accounting
Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Co. is a merchandising business that...
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 Palisade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows:
| 110 | Cash | $83,600 |
| 112 | Accounts Receivable | 233,900 |
| 115 | Merchandise Inventory | 652,400 |
| 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 | Customer Refunds Payable | 50,000 |
| 212 | Salaries Payable | — |
| 310 | Lynn Tolley, Capital, June 1, 20Y6 | 685,300 |
| 311 | Lynn Tolley, Drawing | 135,000 |
| 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 | — |
| 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, 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.
If an amount box does not require an entry, leave it blank.
May 1: Paid rent for May, $5,000.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 2 | fill in the blank 3 | ||
| fill in the blank 5 | fill in the blank 6 |
May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 8 | fill in the blank 9 | ||
| fill in the blank 11 | fill in the blank 12 |
May 4: Paid freight on purchase of May 3, $600.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 14 | fill in the blank 15 | ||
| fill in the blank 17 | fill in the blank 18 |
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 |
|---|---|---|---|
| fill in the blank 20 | fill in the blank 21 | ||
| fill in the blank 23 | fill in the blank 24 | ||
| fill in the blank 26 | fill in the blank 27 | ||
| fill in the blank 29 | fill in the blank 30 |
May 7: Received $22,300 cash from Halstad Co. on account.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 32 | fill in the blank 33 | ||
| fill in the blank 35 | fill in the blank 36 |
May 10: Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 38 | fill in the blank 39 | ||
| fill in the blank 41 | fill in the blank 42 | ||
| fill in the blank 44 | fill in the blank 45 | ||
| fill in the blank 47 | fill in the blank 48 |
May 13: Paid for merchandise purchased on May 3.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 50 | fill in the blank 51 | ||
| fill in the blank 53 | fill in the blank 54 |
May 15: Paid advertising expense for last half of May, $11,000.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 56 | fill in the blank 57 | ||
| fill in the blank 59 | fill in the blank 60 |
May 16: Received cash from sale of May 6.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 62 | fill in the blank 63 | ||
| fill in the blank 65 | fill in the blank 66 |
May 19: Purchased merchandise for cash, $18,700.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 68 | fill in the blank 69 | ||
| fill in the blank 71 | fill in the blank 72 |
May 19: Paid $33,450 to Buttons Co. on account.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 74 | fill in the blank 75 | ||
| fill in the blank 77 | fill in the blank 78 |
May 20: Paid Korman Co. a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 80 | fill in the blank 81 | ||
| fill in the blank 83 | fill in the blank 84 |
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.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 86 | fill in the blank 87 | ||
| fill in the blank 89 | fill in the blank 90 | ||
| fill in the blank 92 | fill in the blank 93 | ||
| fill in the blank 95 | fill in the blank 96 |
May 21: For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 98 | fill in the blank 99 | ||
| fill in the blank 101 | fill in the blank 102 |
May 21: Received $42,900 cash from Gee Co. on account.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 104 | fill in the blank 105 | ||
| fill in the blank 107 | fill in the blank 108 |
May 21: Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 110 | fill in the blank 111 | ||
| fill in the blank 113 | fill in the blank 114 |
May 24: Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 116 | fill in the blank 117 | ||
| fill in the blank 119 | fill in the blank 120 |
May 26: Refunded cash on sales made for cash, $800. The defective merchandise was not returned by the customer.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 122 | fill in the blank 123 | ||
| fill in the blank 125 | fill in the blank 126 |
May 28: Paid sales salaries of $56,000 and office salaries of $29,000.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 128 | fill in the blank 129 | ||
| fill in the blank 131 | fill in the blank 132 | ||
| fill in the blank 134 | fill in the blank 135 |
May 29: Purchased store supplies for cash, $2,400.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 137 | fill in the blank 138 | ||
| fill in the blank 140 | fill in the blank 141 |
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 |
|---|---|---|---|
| fill in the blank 143 | fill in the blank 144 | ||
| fill in the blank 146 | fill in the blank 147 | ||
| fill in the blank 149 | fill in the blank 150 | ||
| fill in the blank 152 | fill in the blank 153 |
May 30: Received cash from sale of May 20 plus freight paid on May 21.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 155 | fill in the blank 156 | ||
| fill in the blank 158 | fill in the blank 159 |
May 31: Paid for purchase of May 21, less return of May 24.
| Description | Post. Ref. | Debit | Credit |
|---|---|---|---|
| fill in the blank 161 | fill in the blank 162 |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Co. is a merchandising business. The...
Comprehensive Problem 2
Part 1 and Part 2:
Palisade Creek Co. is a merchandising business. The account
balances for Palisade Creek Co. as of May 1, 2016 (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
124
Accumulated Depreciation—Store Equipment
56,700
210
Accounts Payable
96,600
211
Salaries Payable
—
212
Customers Refunds Payable
50,000
310...
Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Co. is a merchandising business. The...
Comprehensive Problem 2
Part 1 and Part 2:
Palisade Creek Co. is a merchandising business. The account
balances for Palisade Creek Co. as of May 1, 2016 (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
124
Accumulated Depreciation—Store Equipment
56,700
210
Accounts Payable
96,600
211
Salaries Payable
—
212
Customers Refunds Payable
50,000
310...
Comprehensive Problem 2 Palisade Creek Co. is a merchandising business that uses the perpetual inventory system....
Comprehensive Problem 2
Palisade Creek Co. is a merchandising business that uses the
perpetual inventory system. The account balances for Palisade Creek
as of May 1, 2018 (unless otherwise indicated), are as
follows:
Net income: $741,855
110 Cash $ 83,600 112 Accounts Receivable 233,900 115 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 — 212 Customers...
Part 1 and Part 2: Palisade Creek Co. is a merchandising business that uses the perpetual...
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, 20Y7 (unless otherwise indicated), are as
follows:
110
Cash
$83,600
112
Accounts Receivable
233,900
115
Merchandise Inventory
652,400
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
Customer Refunds Payable
50,000
212
Salaries Payable
—
310
Lynn Tolley,...
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances...
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
124
Accumulated Depreciation-Store
Equipment
56,700
210
Accounts Payable
96,600
211
Customers Refunds Payable
50,000
212
Salaries Payable
—
310
Lynn...
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances...
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 as follows: Assume all accounts have
normal balances.
110
Cash
$
83,600
112
Accounts receivable
233,900
115
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
—
212
Customers refunds payable
50,000...
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances...
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:
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 — 212
Customers Refunds Payable 50,000 310 Lynn...
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances...
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
124
Accumulated Depreciation-Store Equipment
56,700
210
Accounts Payable
96,600
211
Customers Refunds Payable
50,000
212
Salaries Payable
—
310
Lynn...
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances...
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
124
Accumulated Depreciation-Store Equipment
56,700
210
Accounts Payable
96,600
211
Customers Refunds Payable
50,000
212
Salaries Payable
—
310
Lynn...
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances...
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:
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
—
212
Customers Refunds Payable
50,000
310
Lynn...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Pete's Power Pizzas sells a chocolate/tofu filled pastry. Pete's currently sells this pastry for $13.15, and...
- List five foods from your culture or your family food traditions that are prepared using a...
- How does Mead distinguish between the body and the self? How is the self both a...
- Assume you were asked to interview a researcher about the merits and weaknesses of quasi-experimental designs....
- Consider the group G = {1, −1, i, −i, j, −j, k, −k} under multiplication. Here...
- Determine the magnitude of the gravitational force Mars would exert on man if he was on...
- In 2012, the General Social Survey asked a random sample of adults, "Compared to most people,...
ADVERTISEMENT