Palisade Creek Co. is a merchandising business that uses the perpetual inventory
ID: 2510282 • 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 Lynn Tolley, Capital, June 1, 2015 685,300 311 Lynn Tolley, Drawing 135,000 312 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
S No Date Account Debit Credit 1 May 1 Rent Expense 5000 1 May 1 Cash 5000 (Being Rent Paid) 2 May 3 Merchandise Inventory 36000 2 May 3 Accoutns Payable 36000 (being inventory purchased) 3 May 4 Merchandise Inventory 600 3 May 4 Cash 600 (Freight Paid) 4 May 6 Accounts Receivable 68500 4 May 6 Revenue 68500 (being Sales done) 5 May 6 Cost of goods sold 41000 5 May 6 Merchandise Inventory 41000 (COGS of sales) 6 May 7 Cash 22300 6 May 7 Unearned Revenue 22300 (being advance received) 7 May 10 Cash 54000 7 May 10 Revenue 54000 (Cash Sale) 8 May 10 Cost of goods sold 32000 8 May 10 Merchandise Inventory 32000 (COGS) 9 May 13 Accounts Payable 36000 9 May 13 Cash 35280 9 May 13 Merchandise Inventory 720 2% Discount (payment done after taking discount) 10 May 16 Cash 67130 10 May 16 Sales Discoung 1370 2% discoung 10 May 16 Accounts Receivable 68500 (Cash received after discount) 11 May 19 Merchandise Inventory 18700 11 May 19 Cash 18700 (Inventory purchased) 12 May 20 Revenue Return 13230 12 May 20 Cash 13230 13 May 20 Merchandise Inventory 8000 13 May 20 Cost of Goods Sold 8000 14 May 20 Accounts Receivable 110000 14 May 20 Revenue 110000 15 May 20 Cost of Goods Sold 70000 15 May 20 Merchandise Inventory 70000 16 May 21 Accounts Receivable 2300 16 May 21 Cash 2300 17 May 21 Accounts Receivable 42900 17 May 21 Unearned Revenue 42900 18 May 21 Merchandise Inventory 88000 18 May 21 Accounts Payable 88000 19 May 24 Accounts Payable 5000 19 May 24 Merchandise Inventory 5000 20 May 26 Revenue Return 7500 20 May 26 Cash 7500 21 May 26 Merchandise Inventory 4800 21 May 26 Cost of Goods Sold 18000 22 May 28 Sales Salaries Expense 56000 22 May 28 Office Salaries Expense 29000 22 May 28 Cash 85000 23 May 28 Store Supplies Expense 2400 23 May 28 Cash 2400 24 May 30 Accounts Receivable 78750 24 May 30 Revenue 78750 25 May 30 Cost of Goods Sold 47000 25 May 30 Merchandise Inventory 47000 26 May 30 Sale Discount 2100 26 May 30 Cash 111200 26 May 30 Accounts Receivable 113300 27 May 31 Accounts Payable 83000 27 May 31 Cash 83000 Closing Entries 1 May 31 Insurance Expense 12000 1 May 31 Prepaid Insurance 12000 2 May 31 Store Supplies Expense (11400+2400-4000) 9800 2 May 31 Store Supplies 9800 3 May 31 Depreciation Expense 14000 3 May 31 Accumulated Depcreciation 14000 4 May 31 Sales Salaries Expense 7000 4 May 31 Office Salaries Expense 6600 4 May 31 Salaries Payable 13600 Account Date Sum of Debit Sum of Credit Balance Cash May 1 83600 83600 Cash May 1 5000 78600 Cash May 4 600 78000 Cash May 7 22300 100300 Cash May 10 54000 154300 Cash May 13 35280 119020 Cash May 16 67130 186150 Cash May 19 18700 167450 Cash May 20 13230 154220 Cash May 21 2300 151920 Cash May 26 7500 144420 Cash May 28 85000 59420 Cash May 28 2400 57020 Cash May 30 111200 168220 Cash May 31 83000 85220 Accounts Payable May 1 96600 96600 Accounts Payable May 3 36000 132600 Accounts Payable May 13 36000 96600 Accounts Payable May 21 88000 184600 Accounts Payable May 24 5000 179600 Accounts Payable May 31 83000 96600 Accounts Receivable May 1 233900 233900 Accounts Receivable May 6 68500 302400 Accounts Receivable May 16 68500 233900 Accounts Receivable May 20 110000 343900 Accounts Receivable May 21 2300 346200 Accounts Receivable May 21 42900 389100 Accounts Receivable May 30 78750 467850 Accounts Receivable May 30 113300 354550 Rent Expense May 1 5000 5000 Merchandise Inventory May 1 624400 624400 Merchandise Inventory May 3 36000 660400 Merchandise Inventory May 4 600 661000 Merchandise Inventory May 6 41000 620000 Merchandise Inventory May 10 32000 588000 Merchandise Inventory May 13 720 587280 Merchandise Inventory May 19 18700 605980 Merchandise Inventory May 20 8000 613980 Merchandise Inventory May 20 70000 543980 Merchandise Inventory May 21 88000 631980 Merchandise Inventory May 24 5000 626980 Merchandise Inventory May 26 4800 631780 Merchandise Inventory May 30 47000 584780 Revenue May 6 68500 68500 Revenue May 10 54000 122500 Revenue May 20 110000 232500 Revenue May 30 78750 311250 Cost of goods sold May 6 41000 41000 Cost of goods sold May 10 32000 73000 Cost of goods sold May 20 8000 65000 Cost of goods sold May 20 70000 135000 Cost of goods sold May 26 18000 117000 Cost of goods sold May 30 47000 164000 Unearned Revenue May 7 22300 186300 Unearned Revenue May 21 42900 229200 Sale Discount May 16 1370 1370 Sale Discount May 30 2100 3470 Revenue Return May 20 13230 13230 Revenue Return May 26 7500 20730 Sales Salaries Expense May 28 56000 56000 Office Salaries Expense May 28 29000 29000 Store Supplies Expense May 28 2400 2400
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