Comprehensive Problem 2 Part 1 and Part 2 Palsade Creek Co. is a merchandising b

Question

Comprehensive Problem 2 Part 1 and Part 2 Palsade Creek Co. is a merchandising busiress. The account balances for Palisade Creek Co. as of May 1, 2014 (unless otherwise indicated), are as follows 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 116 Prepaid Insurance 117 Store Supplies 123 Store Equipment $ 83,600 233,900 602,400 16,800 11,400 210 Accounts Payable 211 Salaries Payable 310 Capital Stock 100,000 135,000 5,221,100 59,400 1 Retained Eamings 312 Dividends 313 Income Summary 410 Sales 411 Sales Returns and Allowances 412 Sales Discounts 510 Cost of Merchandise Sold S20 Sales Salaries Expense 21 Advertising Expense 522 Depreciation Expense S23 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 39 Miscellaneous Administrative Expense 281,000 12,600 382,100 7,800 Balance in the item section, and place a d h of the assounts in the appropriate balance column of a four-column account. Wnite

Explanation / Answer

Date Account Title & Explanations Debit Credit 1-May rent expense 5000 cash 5000 3-May merchandise inventory 36000 accounts payable 36000 4-May freight in 600 cash 600 6-May accounts receivable 68500 sales 68500 cost of goods sold 41000 merchandise inventory 41000 7-May cash 22300 accounts receivable 22300 10-May cash 54000 sales 54000 cost of goods sold 32000 merchandise inventory 32000 13-May accounts payable 36000 purchase discount 720 cash 35280 14-May sales returns and allowances 13500 accounts receivable 13500 merchandise inventory 8000 cost of merchandise sold 8000 15-May advertising expense 11000 cash 11000 16-May cash 53900 sales discounts 1100 accounts payable 55000 19-May merchandise inventory 18700 cash 18700 accounts payable 33450 cash 33450 20-May accounts receivable 110000 sales 110000 cost of goods sold 70000 merchandise inventory 70000 21-May accounts receivable 2300 cash 2300 cash 42900 accounts receivable 42900 merchandise inventory 88000 accounts payable 88000 24-May accounts payable 5000 merchandise inventory 5000 26-May sales returns and allowances 7500 cash 7500 merchandise inventory 4800 cost of goods sold 4800 28-May sales salaries expense 56000 office salaries expense 29000 cash 85000 29-May store supplies 2400 cash 2400 30-May accounts receivable 78750 sales 78750 cost of goods sold 47000 merchandise inventory 47000 cash 111200 sales discount 1100 accounts receivable 112300 31-May accounts payable 83000 purchase discount 830 cash 82170

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