adjusted trial balance, income statement, statement of stockhokders equity, balance sheet closing entries, post closing trial balance

Comprehensive Problem 2 Part 1 and Part 2: Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 2076 (unless otherwise indicated). are as follows. Assume all accounts have normal balances 110 Cash $83,600 312 Dividends $135,000 112 Accounts Receivable 233,900 410 Sales 5,069,000 115 Inventory 624,400 510 Cost of Goods Sold 2,823,000 116 Estimated Returns Inventory 28,000 520 Sales Salaries Expense 664,800 117 Prepaid Insurance 16,800 521 Advertising Expense 281,000 118 Store Supplies 11,400 522 Depreciation Expense 123 Store Equipment 569,500 523 Store Supplies Expense 124 Accumulated Depreciation Store Equipment 56,700 529 Miscellaneous Selling Expense 12,600 210 Accounts Payable 96,600 530 Office Salaries Expense 382,100 211 Salaries Payable 531 Rent Expense 83,700 212 Customers Refunds Payable 50,000 532 Insurance Expense 310 Common Stock 100,000 539 Miscellaneous Administrative Expense 7,800 311 Retained Earnings 585,300 539 Part 1: Journalize the transactions below for May, the last month of the fiscal year. If an amount box does not require an entry, leave it blank Post. Ref. Debit Credit May 1: Pald rent for May, $5,000 Date Description May Rent Expense Cash 5,000 5,000 May Burchased merchandis.n.c. from Martin CoJerms 2010./30. FOR shianinamit 6.000 Comprehensive Problem 2 Part 4 and 6: Note: You must complete parts 1, 2 and 3 before attempting to complete pa t 4 and part 6. Part 5 is an optional work sheet. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete Part 6. a. Inventory on May 31 b. Insurance expired during the year c. Store supplies on hand on May 31 d. Depreciation for the current year e. Accrued salaries on May 31: Sales salaries Office salaries $570,000 12,000 4,000 14,000 $7,000 6,600 13,600 1. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold. 6. Journalize the adjusting entries, If an amount box does not require an entry, leave it blank, Post the adjusting entries to the attached spreadsheet you used in parts 1 and 2 Date Post. Ref. Debit Description Adjusting Entries Credit 2016 May 31 May 31 20Y6 May 31 May 31 May 31 May 31 May 31 May 31 May 31 Part 5: Optional work sheet Enter the unadjusted trial balance on a 10-column end-of-period spre sheet (worksheet), and complete the spreadsheet using the following adjustment data, a. Inventory on May 31 $570,000 b. Insurance expired during the year 12,000 c. Store supplies on hand on May 31 4,000 d. Depreciation for the current year 14,000 e. Accrued salaries on May 31: Sales salaries $7,000 Office salaries 6,600 13,600 f. The adjustment for customer returns and allowance is $60,000 for sales and $35,000 for cost of goods sold If an amount box does not require an entry, leave it blank Palisade Creek Co. End-of-Period Spreadsheet (Work Sheet) For the Year Ended May 31, 20Y6 Adjustments Adjusted Trial Balance Debit Credit Debit Credit Unadjusted Trial Balance Debit Credit Account Title Cash Accounts Receivable Inventory Fermate Dehn Tauentru Print Item Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title Debit Credit Debit Credit Debit Credit Cash Accounts Receivable Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accum. Depr.-Store Equip Accounts Payable Salaries Payable Customers Refunds Payable Common Stock Retained Earnings Dividends Sales Cost of Goods Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Print Item Accum. Depr.-Store Equip. Accounts Payable Salaries Payable Customers Refunds Payable Common Stock Retained Earnings Dividends Sales Cost of Goods Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Admin Expense Net Income Palisade Creek Co. End-of-Period Spreadsheet (Work Sheet) For the Year Ended May 31, 2016 Adjusted Trial Balance Income Statement Balance Sheet Adjustments Debit Credit Debit Cred Debit Credit Debit Credit Printem Comprehensive Problem 2 Part 7: You must complete parts 1, 2, 3, 4 and 6 before cometing part 7. Part 5 is the optional work sheet. Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank Palisade Creek Co. Adjusted Trial Balance May 31, 2016 Debit Credit Cash Accounts Receivable Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Accounts Payable Salaries Payable Customers Refunds Payable Common Stock Retained Earnings Dividends Print Item Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Accounts Payable Salaries Payable Customers Refunds Payable Common Stock Retained Earnings Dividends Sales Cost of Goods Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense Comprehensive Problem 2 Part 8: You must complete parts 1, 2, 3, 4, 6 and 7 before attempting to complete part 8. Note: part 5 is optional. 1. Prepare a multiple-step income statement. Palisade Creek Co. Income Statement For the Year Ended May 31, 2016 $ $ $ Operating Expenses: Selling expenses: $ $ S$ Total selling expenses Administrative expenses: $$ Total selling expenses $ $ Administrative expenses: $$ $ Total administrative expenses Total operating expenses Net Income $$ 2. Prepare a statement of stockholders' equity. Assume that additional common stock of $10,001 Palisade Creek Co. Statement of Stockholders' Equity For the Year Ended May 31, 2016 Common Stock Retained Earnings Total S $ $$ Print Item 3. Prepare a balance sheet. Palisade Creek Co. Balance Sheet May 31, 20Y6 Assets Current assets: S$ $$ Total current assets Property, plant, and equipment: $$ Total property, plant, and equipment Total assets Liabilities Current liabilities: $$ III Total current assets $ $ Property, plant, and equipment: $$ Total property, plant, and equipment Total assets $ $$ Liabilities Current liabilities: $ $ Total liabilities $$ Stockholders' Equity $$ Total stockholders' equity Total liabilities and Stockholders' Equity 55