Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows. Assume all accounts have normal balances. 110 Cash $83,600 312 Dividends $135,000 112 Accounts Receivable 233,900 410 Sales 5,069,000 115 Inventory 624,400 510 Cost of Goods Sold 2,823,000 116 Estimated Returns Inventory 28,000 520 Sales Salaries Expense 664,800 117 Prepaid Insurance 16,800 521 Advertising Expense 281,000 118 Store Supplies 11,400 522 Depreciation Expense — 123 Store Equipment 569,500 523 Store Supplies Expense — 124 Accumulated Depreciation—Store Equipment 56,700 529 Miscellaneous Selling Expense 12,600 210 Accounts Payable 96,600 530 Office Salaries Expense 382,100 211 Salaries Payable — 531 Rent Expense 83,700 212 Customers Refunds Payable 50,000 532 Insurance Expense — 310 Common Stock 100,000 539 Miscellaneous Administrative Expense 7,800 311 Retained Earnings 585,300 539 Comprehensive Problem 2 Part 8: You must complete parts 1, 2, 3, 4, 6 and 7 before attempting to complete part 8. Note: part 5 is optional. 1. Prepare a multiple-step income statement. Palisade Creek Co. Income Statement For the Year Ended May 31, 20Y6 $ fill in the blank 2 fill in the blank 4 fill in the blank 6 Operating Expenses: Selling expenses: $ fill in the blank 8 fill in the blank 10 fill in the blank 12 fill in the blank 14 fill in the blank 16 Total selling expenses $ fill in the blank 17 Administrative expenses: $ fill in the blank 19 fill in the blank 21 fill in the blank 23 fill in the blank 25 Total administrative expenses fill in the blank 26 Total operating expenses fill in the blank 27 Net income $ fill in the blank 28 2. Prepare a statement of stockholders’ equity. Assume that additional common stock of $10,000 was issued in January 20Y6. Palisade Creek Co. Statement of Stockholders’ Equity For the Year Ended May 31, 20Y6 Common Stock Retained Earnings Total $fill in the blank 30 $fill in the blank 31 $fill in the blank 32 fill in the blank 34 fill in the blank 35 fill in the blank 37 fill in the blank 38 fill in the blank 40 fill in the blank 41 $fill in the blank 43 $fill in the blank 44 $fill in the blank 45 3. Prepare a balance sheet. Palisade Creek Co. Balance Sheet May 31, 20Y6 Assets Current assets: $fill in the blank 47 fill in the blank 49 fill in the blank 51 fill in the blank 53 fill in the blank 55 fill in the blank 57 Total current assets $fill in the blank 58 Property, plant, and equipment: $fill in the blank 60 fill in the blank 62 Total property, plant, and equipment fill in the blank 63 Total assets $fill in the blank 64 Liabilities Current liabilities: $fill in the blank 66 fill in the blank 68 fill in the blank 70 Total liabilities $fill in the blank 71 Stockholders’ Equity $fill in the blank 73 fill in the blank 75 Total stockholders’ equity fill in the blank 76 Total liabilities and Stockholders’ Equity $fill in the blank 77

Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows. Assume all accounts have normal balances. 110 Cash $83,600 312 Dividends $135,000 112 Accounts Receivable 233,900 410 Sales 5,069,000 115 Inventory 624,400 510 Cost of Goods Sold 2,823,000 116 Estimated Returns Inventory 28,000 520 Sales Salaries Expense 664,800 117 Prepaid Insurance 16,800 521 Advertising Expense 281,000 118 Store Supplies 11,400 522 Depreciation Expense — 123 Store Equipment 569,500 523 Store Supplies Expense — 124 Accumulated Depreciation—Store Equipment 56,700 529 Miscellaneous Selling Expense 12,600 210 Accounts Payable 96,600 530 Office Salaries Expense 382,100 211 Salaries Payable — 531 Rent Expense 83,700 212 Customers Refunds Payable 50,000 532 Insurance Expense — 310 Common Stock 100,000 539 Miscellaneous Administrative Expense 7,800 311 Retained Earnings 585,300 539 Comprehensive Problem 2 Part 8: You must complete parts 1, 2, 3, 4, 6 and 7 before attempting to complete part 8. Note: part 5 is optional. 1. Prepare a multiple-step income statement. Palisade Creek Co. Income Statement For the Year Ended May 31, 20Y6 $ fill in the blank 2 fill in the blank 4 fill in the blank 6 Operating Expenses: Selling expenses: $ fill in the blank 8 fill in the blank 10 fill in the blank 12 fill in the blank 14 fill in the blank 16 Total selling expenses $ fill in the blank 17 Administrative expenses: $ fill in the blank 19 fill in the blank 21 fill in the blank 23 fill in the blank 25 Total administrative expenses fill in the blank 26 Total operating expenses fill in the blank 27 Net income $ fill in the blank 28 2. Prepare a statement of stockholders’ equity. Assume that additional common stock of $10,000 was issued in January 20Y6. Palisade Creek Co. Statement of Stockholders’ Equity For the Year Ended May 31, 20Y6 Common Stock Retained Earnings Total $fill in the blank 30 $fill in the blank 31 $fill in the blank 32 fill in the blank 34 fill in the blank 35 fill in the blank 37 fill in the blank 38 fill in the blank 40 fill in the blank 41 $fill in the blank 43 $fill in the blank 44 $fill in the blank 45 3. Prepare a balance sheet. Palisade Creek Co. Balance Sheet May 31, 20Y6 Assets Current assets: $fill in the blank 47 fill in the blank 49 fill in the blank 51 fill in the blank 53 fill in the blank 55 fill in the blank 57 Total current assets $fill in the blank 58 Property, plant, and equipment: $fill in the blank 60 fill in the blank 62 Total property, plant, and equipment fill in the blank 63 Total assets $fill in the blank 64 Liabilities Current liabilities: $fill in the blank 66 fill in the blank 68 fill in the blank 70 Total liabilities $fill in the blank 71 Stockholders’ Equity $fill in the blank 73 fill in the blank 75 Total stockholders’ equity fill in the blank 76 Total liabilities and Stockholders’ Equity $fill in the blank 77

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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Question

110	Cash	$83,600	312	Dividends	$135,000
112	Accounts Receivable	233,900	410	Sales	5,069,000
115	Inventory	624,400	510	Cost of Goods Sold	2,823,000
116	Estimated Returns Inventory	28,000	520	Sales Salaries Expense	664,800
117	Prepaid Insurance	16,800	521	Advertising Expense	281,000
118	Store Supplies	11,400	522	Depreciation Expense	—
123	Store Equipment	569,500	523	Store Supplies Expense	—
124	Accumulated Depreciation—Store Equipment	56,700	529	Miscellaneous Selling Expense	12,600
210	Accounts Payable	96,600	530	Office Salaries Expense	382,100
211	Salaries Payable	—	531	Rent Expense	83,700
212	Customers Refunds Payable	50,000	532	Insurance Expense	—
310	Common Stock	100,000	539	Miscellaneous Administrative Expense	7,800
311	Retained Earnings	585,300	539

Comprehensive Problem 2
Part 8:

You must complete parts 1, 2, 3, 4, 6 and 7 before attempting to complete part 8.

Note: part 5 is optional.

1. Prepare a multiple-step income statement.

Palisade Creek Co. Income Statement For the Year Ended May 31, 20Y6
			$ fill in the blank 2
			fill in the blank 4
			fill in the blank 6
Operating Expenses:
Selling expenses:
	$ fill in the blank 8
	fill in the blank 10
	fill in the blank 12
	fill in the blank 14
	fill in the blank 16
Total selling expenses		$ fill in the blank 17
Administrative expenses:
	$ fill in the blank 19
	fill in the blank 21
	fill in the blank 23
	fill in the blank 25
Total administrative expenses		fill in the blank 26
Total operating expenses			fill in the blank 27
Net income			$ fill in the blank 28

2. Prepare a statement of stockholders’ equity. Assume that additional common stock of $10,000 was issued in January 20Y6.


Common Stock	Retained Earnings	Total
$fill in the blank 30	$fill in the blank 31	$fill in the blank 32
fill in the blank 34		fill in the blank 35
	fill in the blank 37	fill in the blank 38
	fill in the blank 40	fill in the blank 41
$fill in the blank 43	$fill in the blank 44	$fill in the blank 45

3. Prepare a balance sheet.

Palisade Creek Co. Balance Sheet May 31, 20Y6
Assets
Current assets:
	$fill in the blank 47
	fill in the blank 49
	fill in the blank 51
	fill in the blank 53
	fill in the blank 55
	fill in the blank 57
Total current assets		$fill in the blank 58
Property, plant, and equipment:
	$fill in the blank 60
	fill in the blank 62
Total property, plant, and equipment		fill in the blank 63
Total assets		$fill in the blank 64

Liabilities
Current liabilities:
	$fill in the blank 66
	fill in the blank 68
	fill in the blank 70
Total liabilities		$fill in the blank 71
Stockholders’ Equity
	$fill in the blank 73
	fill in the blank 75
Total stockholders’ equity		fill in the blank 76
Total liabilities and Stockholders’ Equity		$fill in the blank 77

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