Palisade Creek Co is a merchandising business The

account balances
Palisade Creek Co. is a merchandising business. The account balances for Palisade Creek Co.
as of May 1, 2014 (unless otherwise indicated), are as follows:During May, the last month of the
fiscal year, the following transactions were completed:May 1. 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, no discount.10. Sold
merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.13. Paid for
merchandise purchased on May 3, less discount.14. Received merchandise returned on sale of
May 6, $13,500. The cost of the merchandise returned was $8,000.15. Paid advertising
expense for last half of May, $11,000.16. Received cash from sale of May 6, less return of May
14 and discount.19. Purchased merchandise for cash, $18,700.19. Paid $33,450 to Buttons Co.
on account, no discount.Record the following transactions on Page 21 of the journal.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, no
discount.21. Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB
destination, $88,000.24. Returned $5,000 of damaged merchandise purchased on May 21,
receiving credit from the seller.May 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, less discount, plus
freight paid on May 21.31. Paid for purchase of May 21, less return of May 24 and
discount.Instructions1. Enter the balances of each of the accounts in the appropriate balance
column of a four-column account. Write Balance in the item section, and place a check mark (?)
in the Posting Reference column. Journalize the transactions for July, starting on Page 20 of the
journal.2. Post the journal to the general ledger, extending the month-end balances to the
appropriate balance columns after all posting is completed. In this problem, you are not required
to update or post to the accounts receivable and accounts payable subsidiary ledgers.3.
Prepare an unadjusted trial balance.4. At the end of May, the following adjustment data were
assembled. Analyze and use these data to complete (5) and (6).5. (Optional.) Enter the
unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete
the spreadsheet.6. Journalize and post the adjusting entries. Record the adjusting entries on
Page 22 of the journal.7. Prepare an adjusted trial balance.8. Prepare an income statement, a
retained earnings statement, and a balance sheet.9. Prepare and post the closing entries.
Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a
line in both the Balance columns opposite the closing entry. Insert the new balance in the
retained earnings account.10. Prepare a post-closing trialbalance.
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Palisade Creek Co is a merchandising business The account balances
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