Question
PREPARE AN UNADJUSTED TRAIL BALANCE
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:
During May, the last month of the fiscal year, the following transactions were completed:
Record the following transactions on page 20 of the journal. Refer to the Chart of Accounts for exact wording of account titles.
Record the following transactions on page 21 of the journal. Refer to the Chart of Accounts for exact wording of account titles.
Paid for purchase of May 21, less return of May 24.
|
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 |
