Part 1 and Part 2: Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows: 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 Customer Refunds Payable 50,000 212 Salaries Payable 310 Lynn Tolley, Capital, June 1, 2018 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 For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". May 1: Paid rent for May, $5,000. Description Post. Ref. Debit Credit May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Description Post. Ref. Debit Credit May 4: Paid freight on purchase of May 3, $600. Description Post. Ref. Debit Credit

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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Part 1 and Part 2:
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (unless
otherwise indicated), are as follows:
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
Customer Refunds Payable
50,000
212
Salaries Payable
310 Lynn Tolley, Capital, June 1, 2018
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
Transcribed Image Text:Part 1 and Part 2: Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows: 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 Customer Refunds Payable 50,000 212 Salaries Payable 310 Lynn Tolley, Capital, June 1, 2018 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
For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
May 1: Paid rent for May, $5,000.
Description
Post. Ref.
Debit
Credit
May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
Description
Post. Ref.
Debit
Credit
May 4: Paid freight on purchase of May 3, $600.
Description
Post. Ref.
Debit
Credit
Transcribed Image Text:For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". May 1: Paid rent for May, $5,000. Description Post. Ref. Debit Credit May 3: Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. Description Post. Ref. Debit Credit May 4: Paid freight on purchase of May 3, $600. Description Post. Ref. Debit Credit
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