Question Palisade Creek Co. is a merchandising business that uses the perpetual

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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.

Paid for purchase of May 21, less return of May 24.

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 7,800

Explanation / Answer

Journal Entries

The trial balance is not prepared.

Sl. No Particluars Debit Credit 1 Rent Expense 5000 Cash 5000 2 Inventory 36000 Martin Co 36000 3 Freight Inward 600 Cash 600 4 Korman Co 68500 Sales 68500 5 Cost of Goods Sold 41000 Inventory 41000 6 Cash 22300 Halstad Co 22300 7 Cash 54000 Sales 54000 8 Cost of Goods Sold 32000 Inventory 32000 9 Martin Co 36000 Purchase Discount 720 Cash 35280 10 Advertisement Expense 11000 Cash 11000 11 Cash 67130 Sales discount 1370 Korman Co 68500 12 Inventory 18700 Cash 18700 13 Buttons Co 33450 Cash 33450 14 Korman Co 13500 Cash 270 Sales discount 13230 15 Inventory 8000 Cost of Goods Sold 8000 16 Cresent Co 110000 Sales 110000 17 Cost of Goods Sold 70000 Inventory 70000 18 Freight Outwards 2300 Cash 2300 19 Cash 42900 Gee Co 42900 20 Inventory 88000 Osterman Co 88000 21 Osterman Co 5000 Inventory 5000 22 Sales 7500 Sales return 7500 23 Sales return 7500 Cash 7500 24 Inventory 4800 Cost of Goods Sold 4800 25 Sales salary 56000 Office salary 29000 Cash 85000 26 Store Supply 2400 Cash 2400 27 Turner Co 78750 Sales 78750 28 Cost of Goods Sold 47000 Inventory 47000 29 Cash 111200 Sales discount 1100 Freight Outwards 2300 Cresent Co 110000 30 Osterman Co 83000 Purchase Discount 830 Cash 82170 31 Depreciation 14000 Accumulated Depreciation 14000 32 Sales salary 7000 Office salary 6600 Accrued Salary 13600 33 P&L 60000 Sales allowance 60000

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