InstructionsPalisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co as of May 1, 20Y7 (unless otherwise indicated), are as follows:110Cash$83,600112Accounts Receivable233,900115Merchandise Inventory652,400117Prepaid Insurance16,800118Store Supplies11,400123Store Equipment569,500124Accumulated Depreciation-Store Equipment56,700210Accounts Payable96,600211Customer Refunds Payable50,000212Salaries Payable310Lynn Tolley, Capital, June 1, 20Y6685,300311Lynn Tolley, Drawing135,000410Sales5,069,000510Cost of Merchandise Sold2,823,000520Sales Salaries Expense664,800521Advertising Expense281,000522Depreciation Expense523Store Supplies Expense529Miscellaneous Selling Expense12,600530Office Salaries Expense382,10083,700531Rent Expense532Insurance Expense7 800539Miscellaneous Administrative ExnenseRecord the following transactions on page 20 of the journal.MayPaid rent for May, $5,000.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.Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The costof the merchandise sold was $41,000.7.Received $22,300 cash from Halstad Co. on account10Sold merchandise for cash, S54,000. The cost of the merchandise sold was $32,000.13Paid for merchandise purchased on May 3.15Paid advertising expense for last half of May, $11,000.16Received cash from sale of May 6.19Purchased merchandise for cash, $18,700.19Paid $33,450 to Buttons Co. on account.20Paid Korman Co. a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co.kept the merchandise.Adjusted Trial BalanceInstructionsRecord the following transactions on page 21 of the journal.20Sold merchandise on account to Crescent Co., terms 1/10, n/30, FÖB shipping point, $110.000. TheMaycost of the merchandise sold was $70,000.21For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.21Received $42,900 cash from Gee Co. on account21Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88.000.24Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for$5,000.26Refunded cash on sales made for cash, $800. The defective merchandise was not returned by thecustomer.28Paid sales salaries of $56,000 and office salaries of $29,000.29Purchased store supplies for cash, $2,400.30Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost ofthe merchandise sold was $47,000.30Received cash from sale of May 20 plus freight paid on May 21.31Paid for purchase of May 21, less return of May 24. 2, PartInstructionsChart of AccountsJournalLedgerUnadjusted Trial BalanceAdjusted Trial BalanceInstructionsin Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade inCengageNOW on this problem.A. Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the datecolumn. Write Balance in the item section, and enter "X" in the Posting Reference column.B. Journalize the transactions for May, 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 Inthis problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. Add the appropriateposting reference to the journal.3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank4. 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, $585,200• 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, $7,000Office salaries, $6,600Total accrued salaries: $13,600• The adjustment for customer refunds and allowances is $60,000.Ln. 6 Comprehensive Problem 2, Part 1Adjusted Trial BalanceLedgerUnadjusted Trial BalanceChart of AccountsJournalInstructionsInstructionsme aujuSunent or castomer Teiunu arnu anowarices o VOu,000.5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), andcomplete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded.6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.*B. Post the adjusting entries. Add the appropriate posting reference to the journal.7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank.*Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations.. Every lineon a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.InstructionsRequired:8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement ofowner's equity, and a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) toprepare an income statement, a statement of owner's equity, and a balance sheet"9.A. Prepare the closing entries. Record the closing entrieon Page 23 of the journal. Refer to the chart of accounts for the exact wording of theaccount titles. CNOW jourmals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOWjournals will automatically indent a credit entry when a credit amount is entered.B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal.10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank."For guidance in completing the financial statements, be sure to read the instructions above each statement carefully

Journal - A business's initial financial transactions are recorded in the journal, which is its…

Creek Co, is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: $83,600 233,900 652,400 16,800 11,400 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 210 Accounts Payable 211 212 Customer Refunds Payable Salaries Payable Lynn Tolley, Capital, June 1, 20Y6 Lynn Tolley, Drawing Sales Cost of Merchandise Sold 520 Sales Salaries Expense 310 311 410 510 569,500 56,700 96,600 50,000 685,300 135,000 5,069,000 2,823,000 664,800

Creek Co, is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: $83,600 233,900 652,400 16,800 11,400 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 210 Accounts Payable 211 212 Customer Refunds Payable Salaries Payable Lynn Tolley, Capital, June 1, 20Y6 Lynn Tolley, Drawing Sales Cost of Merchandise Sold 520 Sales Salaries Expense 310 311 410 510 569,500 56,700 96,600 50,000 685,300 135,000 5,069,000 2,823,000 664,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mayfair Co. completed the following transactions and uses a perpetual inventory system. June 4 Sold $650 of merchandise on credit (that had cost $400) to Natara Morris, terms n∕15. 5 Sold $6,900 of merchandise (that had cost $4,200) to customers who used their Zisa cards. Zisa charges a 3% fee. 6 Sold $5,850 of merchandise (that had cost $3,800) to customers who used their Access cards. Access charges a 2% fee. 8 Sold $4,350 of merchandise (that had cost $2,900) to customers who used their Access cards. Access charges a 2% fee. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $429 balance in McKee’s account was from a credit sale last year. 18 Received Morris’s check in full payment for the June 4 purchase. Required Prepare journal entries to record the preceding transactions and events.
John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $5,500. Freight charges of $550 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $850 and John's account was credited by the supplier. 3. Merchandise costing $3,050 was sold for $5,700 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 2 3 4 5 Record the merchandise purchased on account for $5,500. Note: Enter debits before credits. Transaction General Journal Debit Credit 1a Record entry Clear entry View general journal 1b Record the payment of freight charges for $55o. 2. Record the return of merchandise purchased on account costing $850. 3a. Record the sale of merchandise for…
On December 22, Travis Company purchased merchandise on account from a supplier for $7,500, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period on December 31. Required: Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS Travis Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customers Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE…
Global Company sold merchandise for $11,700 on account. The cost of the items sold was $7,900. If the company uses the perpetual inventory system, which of the following best reflects the journal entry that should be prepared to record this transaction? Debit Credit A. Sales revenue 11,700 Accounts receivable 11,700 Cost of goods sold 7,900 Merchandise inventory 7,900 B. Accounts receivable 11,700 Merchandise inventory 7,900 Sales revenue 3,800 C. Accounts receivable 3,800 Sales revenue 3,800 D. Accounts receivable 11,700 Sales revenue 11,700 Cost of goods sold 7,900 Merchandise inventory 7,900 Group of answer choices A. B. C. D.
South Coast Boards Co. is a merchandising business. The account balances for South Coast Boards Co. as of July 1, 2010 (unless otherwise indicated), are as follows 110 Cash $ 63,600 112 Accounts Receivable 153,900 115 Merchandise Inventory 602,400 116 Prepaid Insurance 16,800 117 Store Supplies 11,400 123 Store Equipment 469,500 124 Accumulated Depreciation—Store Equipment 56,700 210 Accounts Payable 96,600 211 Salaries Payable — 310 Rocky Hansen, Capital, August 1, 2009 555,300 311 Rocky Hansen, Drawing 135,000 312 Income Summary — 410 Sales 3,221,100 411 Sales Returns and Allowances 92,700 412 Sales Discounts 59,400 510 Cost of Merchandise Sold 1,623,000 520 Sales Salaries Expense 334,800 521 Advertising Expense 81,000 522 Depreciation Expense — 523 Store Supplies Expense — 529 Miscellaneous Selling Expense 12,600…
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: 110 Cash $ 83,600 112 Accounts Receivable 233,900 115 Merchandise Inventory 652,400 117 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 Customer Refunds Payable 50,000 212 Salaries Payable — 310 Lynn Tolley, Capital, June 1, 20Y6 685,300 311 Lynn Tolley, Drawing 135,000 410 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 During…
Current Attempt in Progress Prepare the necessary journal entries to record the following transactions, assuming Cullumber Company uses a perpetual inventory system. (a) Cullumber sells $57,500 of merchandise, terms 1/10, n/30. The merchandise cost $39,220. (b) The customer in (a) returned $5,300 of merchandise to Cullumber. The merchandise returned cost $3,710. (c) Cullumber received the balance due within the discount period. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Transactions Account Titles and Explanation (a) (To record credit sale.) (To record cost of goods sold.) Debit Credit SU