Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows:

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	11400
123	store equipment	569,500
124	accumulated depreciation-store equipment	56,700
210	accounts payable	96,600
211	customers refunds payable	50,000
212	salaries payable	---
310	Lynn tolley, capital, june 1, 2018	685,300
311	Lynn Tolley, drawing	135,000
410	sales	5,069,00
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	7,800

CHART OF ACCOUNTS
Palisade Creek Co.
General Ledger
ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 116 Estimated Returns Inventory 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment LIABILITIES 210 Accounts Payable 211 Customers Refunds Payable 212 Salaries Payable EQUITY 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing	REVENUE 410 Sales EXPENSES 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 539 Miscellaneous Administrative Expense

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.

2	Paid rent for May, $5,000.
3	Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
4	Paid freight on purchase of May 3, $600.
6	Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.
7	Received $22,300 cash from Halstad Co. on account.
10	Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.
13	Paid for merchandise purchased on May 3.
15	Paid advertising expense for last half of May, $11,000.
16	Received cash from sale of May 6.
19	Purchased merchandise for cash, $18,700.
19	Paid $33,450 to Buttons Co. on account.
20	Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500, and the cost of the returned merchandise was $8,000.

Record the following transactions on page 21 of the journal. Refer to the Chart of Accounts for exact wording of account titles.

20	Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000.
21	For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.
21	Received $42,900 cash from Gee Co. on account.
21	Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.
24	Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.
26	Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800.
28	Paid sales salaries of $56,000 and office salaries of $29,000.
29	Purchased store supplies for cash, $2,400.
30	Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000.
30	Received cash from sale of May 20 plus freight paid on May 21.
31	Paid for purchase of May 21, less return of May 24.

Prepare an unadjusted trial balance. Accounts with zero balances can be left blank palisade creek Co. Unadjusted Trial Balance May 31, 2019

acounts title	debit	credit
Cash
Accounts Receivable
Merchandise Inventory
Estimated Returns Inventory
Prepaid Insurance
Store Supplies
Store Equipment
Accumulated Depreciation-Store Equipment
Accounts Payable
Customers Refunds Payable
Salaries Payable
Lynn Tolley, Capital
Lynn Tolley, Drawing
Sales
Cost of Merchandise Sold
Sales Salaries Expense
Advertising Expense
Depreciation Expense
Store Supplies Expense
Miscellaneous Selling Expense
Office Salaries Expense
Rent Expense
Insurance Expense
Miscellaneous Administrative Expense
Totals

At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).

	Merchandise inventory on May 31, $570,000
	Insurance expired during the year, $12,000
	Store supplies on hand on May 31, $4,000
	Depreciation for the current year, $14,000
	Accrued salaries on May 31: Sales salaries, $7,000 Office salaries, $6,600 Total accrued salaries: $13,600
	The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of merchandise sold. 7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank. Palisade Creek Co. Adjusted Trial Balance may 31, 2019 accounts title debit credit cash Accounts Receivable Merchandise Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Accounts Payable Customers Refunds Payable Salaries Payable Lynn Tolley, Capital Lynn Tolley, Drawing Sales Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense Totals Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.* 9. A. Prepare the closing entries. Record the closing entries on Page 23 of the journal. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Palisade Creek Co. General Ledger ASSETS 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 116 Estimated Returns Inventory 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 212 Customers Refunds Payable EQUITY 310 Lynn Tolley, Capital 311 Lynn Tolley, Drawing 312 Income Summary REVENUE 410 Sales EXPENSES 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 539 Miscellaneous Administrative Expense LabelsAdministrative expensesCurrent assetsCurrent liabilitiesFor the Year Ended May 31, 2019Long-term liabilitiesMay 31, 2019ExpensesOther income and expenseProperty, plant, and equipmentSelling expensesAmount DescriptionsAdd withdrawalsCost of merchandise purchasedGross profitIncome from operationsIncrease in owners equityLynn Tolley, capital, June 1, 2018Lynn Tolley, capital, May 31, 2019WithdrawalsMerchandise available for saleNet incomeNet income for the yearNet lossNet purchasesTotal administrative expensesTotal assetsTotal current assetsTotal current liabilitiesTotal liabilitiesTotal liabilities and owners equityTotal ExpensesTotal property, plant, and equipmentTotal selling expenses 10. use the adjusted trial balance figures to prepare an statement of owner's equity, Palisde Creek Co. Statement of owners equtiy prepare an income statement Palisade Creek Co. Income statement use the adjusted trial balance figures to prepare a balance sheet. palisade creek Co. Balance sheet 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. totals