Palisade Creek Co. is a merchandising business that uses the perpetual inventory
ID: 2482861 • Letter: P
Question
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:
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.
Record the following transactions on page 21 of the journal. Refer to the Chart of Accounts for exact wording of account titles.
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 Common Stock 100,000 311 Retained Earnings 585,300 312 Dividends 135,000 313 Income Summary — 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 7,800Explanation / Answer
Date Accounts Debit Credit 1-May rent expense 5,000 cash 5,000 3-May Merchandise Inventory 36,000 Accounts payable 36,000 4-May Merchandise Inventory 600 Accounts payable 600 6-May Accounts Receivable 68,500 sales 68,500 6-May Cost of Merchandise Sold 41,000 Merchandise Inventory 41,000 7-May cash 22,300 Accounts Receivable 22,300 10-May cash 54,000 sales 54,000 10-May Cost of Merchandise Sold 32,000 Merchandise Inventory 32,000 13-May Accounts payable 36,000 cash 36,000 15-May Advertising Expense 11,000 cash 11,000 16-May cash 68,500 accounts receivable 68,500 19-May merchandise inventory 18,700 cash 18,700 19-May Accounts payable 33,450 cash 33,450 20-May accounts receivable 13,230 cash 13,230 20-May sales 13,500 account receivable 13,500 20-May merchandise inventory 8,000 Cost of Merchandise Sold 8,000 20-May Accounts Receivable 110,000 sales 110,000 20-May Cost of Merchandise Sold 70,000 Merchandise Inventory 70,000 21-May accounts receivable 2,300 cash 2,300 21-May cash 42,900 account receivable 42,900 21-May Merchandise Inventory 88,000 Accounts payable 88,000 24-May Accounts payable 5,000 sales 5,000 26-May sales 7,500 cash 7,500 26-May Merchandise Inventory 4,800 Cost of Merchandise Sold 4,800 28-May sales salaries expense 56,000 office salaries expense 29,000 cash 85,000 29-May store supplies expense 2,400 cash 2,400 30-May Accounts Receivable 78,750 sales 78,750 30-May Cost of Merchandise Sold 47,000 Merchandise Inventory 47,000 30-May cash 112,300 accounts receivable 112,300 31-May accounts payable 83,000 cash 83,000 Adjustments Balance 110 Cash $83,600 2,420 $86,020 112 Accounts Receivable 233,900 69,680 303,580 115 Merchandise Inventory 624,400 -33,900 590,500 116 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 -32,850 63,750 211 Salaries Payable — 212 Customers Refunds Payable 50,000 310 Common Stock 100,000 311 Retained Earnings 585,300 312 Dividends 135,000 313 Income Summary — 410 Sales 5,069,000 295,250 5,364,250 510 Cost of Merchandise Sold 2,823,000 177,200 3,000,200 520 Sales Salaries Expense 664,800 56,000 720,800 521 Advertising Expense 281,000 11,000 292,000 522 Depreciation Expense — 523 Store Supplies Expense — 2,400 2,400 529 Miscellaneous Selling Expense 12,600 530 Office Salaries Expense 382,100 29,000 411,100 531 Rent Expense 83,700 5,000 88,700 532 Insurance Expense — 539 Miscellaneous Administrative Expense 7,800
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