Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Co. is a merchandising

Question

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 112 Accounts Receivable 115 Merchandise Inventory 116 Estimated Returns Inventory 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 $83,600 233,900 624,400 28,000 16,800 11,400 569,500 56,700 96,600 Accumulated Depreciation-Store Equipment 210 Accounts Payable 211 Salaries Payable 212 Customers Refunds Payable 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary 410 Sales 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Insurance Expense 50,000 100,000 585,300 135,000 5,069,000 2,823,000 664,800 281,000 12,600 382,100 83,700

Explanation / Answer

Hi, Please find the answers for Parts 7, 8(Retained Earnings Statement Only) and 9. Parts 1-6 and Part 10 are completed and correct. Hence they are not answered.

Part 7

An adjusted trial balance involves addition or deduction of the adjustments to the respective accounts. For Example, the loss of inventory amounting to 13500 needs to be deducted from the inventory account, resulting in the adjusted balance of 570,000. The following is the adjusted Trial Balance:

Part 8

Part 9- Adjustment Journals

The following are the closing journals to be passed to transfer the respective revnue and expense balance to retained earnings.

Adjusted Trial Balance Description Debit Credit Cash            84,500 Accounts Receivable         2,45,875 Merchandise Inventory         5,70,000 Estimated Returns Inventory            50,200 Prepaid Insurance               4,800 Store Supplies               4,000 Store Equipment         5,69,500 Accumalated Depreciation - Store Equipment            70,700 Accounts Payable            63,150 Salary Payable            13,600 Customer Refund Payable            89,270 Common Stock         1,00,000 Retained Earnings         5,85,300 Dividends         1,35,000 Sales       53,16,205 Cost of Merchandise Sold       29,91,950 Sales Salaries Expenses         7,27,800 Advertising Expense         2,92,000 Depreciation Expense            14,000 Store Supplies Expenses               9,800 Miscellaneous Selling Expenses            12,600 Office Salaries Expenses         4,17,700 Rent Expenses            88,700 Insurance Expenses            12,000 Miscellaneous Administrative Expenses               7,800 Total       62,38,225       62,38,225

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.