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

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:

5/1         Rent Expense    5000      

                   Cash                                      5000

5/3         Merchandise Expense   35280

Accounts payable                             35280

5/4         Merchandise Inventory 600

Cash                                                      600

5/6         Cost of Merchandise Sold             41000   

Merchandise Inventory                                 41000

5/6         Accounts Payable             67130

Sales                                                      67130

5/7         Cash      22300

                Accounts Receivable       22300

5/10       Cost of Merchandise Sold             32000

Merchandise Inventory                                 32000

5/10       Cash      4000

                Sales                      4000

5/13       Accounts Payable             35280

                Cash                                                      35280

5/15       Advertising Expense       11000

                Cash                                                      11000

5/16       Cash      67130

                Accounts Receivable       67130

5/19       Accounts Payable             33450

                Cash                                                      33450

5/19       Merchandise Inventory                 18700

                Cash                                                                      18700

5/19       Customer Refunds Payable          13230

                Cash                                                                      13230

5/20       Merchandise Inventory                 8000

                Estimated Returns Inventory                      8000

5/20       Accounts Receivable       108900

                Sales                                                      108900

5/20       Cost of Merchandise Sold             70000

Merchandise Inventory                                                 70000   

5/21       Accounts Receivable       2300

                Cash                                                      2300

5/21       Cash      42900

                Accounts Receivable                       42900   

5/21       Merchandise Inventory                 87120

                Accounts Payable                                             87120

5/24       Accounts Payable             4950

                Merchandise Inventory                 4950

5/26       Customer Refunds Payable          7500

                Cash                                                                      7500

5/28       Sales Salaries Expense                   56000

                Office Salaries Expense                                 56000

5/29       Store Supplies                   2400

                Cash                                                      2400

5/30       Accounts Receivable                       77175

                Sales                                                                      77175

5/30       Cash      111200

                Accounts Receivable       111200

5/30       Cost of Merchandise Sold             47000

                Merchandise Inventory                                 47000

5/30       Accounts Receivable       72300

                Cash                                                      72300

5/31       Accounts Payable             82170

                Cash                                                      82170

5/31       Store Supplies Expense 9800

                Store Expense                                   9800

5/31       Insurance Expense          12000

                Prepaid Expense                              12000

5/31       Depreciation Expense    1400

                Accumulated Depreciation-Store Equipment       1400

5/31       Sales Salaries Expense   7000

                Office Salaries Expense   6600

                Salaries Payable                                                13600

5/31       Cost of Merchandise Sold             78750

                Merchandise Inventory                                 78750

5/31       Estimated Returns Inventory      35000

                Cost of Merchandise Sold                             35000

5/3         Sales      60000   

                Customers Refunds Payable        60000

Instructions: Prepare an adjusted trial balance

               

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

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

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