You must complete parts 1, 2, 3, 4 and 6 before completing part 7. Part 5 is the optional work sheet. Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank. Pallsada Creek Co. Adjusted Trial Balance May 31, 2016 Debit Credit Cash 84,500 Accounts Receivable 245,875 ✓ < 583,950 X 15,200 X 16,800 X Inventory Estimated Returns Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation Store Equipment 13,800 x 569,500 56,700 X Accounts Payable 63,150 Salaries Payable Calculator Salarles Payable 29,270 Customers Refunds Payable 100,000 Common Stock 585,300 Retained Earnings Dividends 135,000 5,376,205 X Sales Cost of Goods Sold 3,013,000 X 720,800 x 292,000 ✓ Sales Salaries Expense Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense 12,600 Office Salaries Expense 411,100 X Rent Expense 88,700 Insurance Expense Miscellaneous Administrative Expense 7,800 6,210,625 x 6,210,625 x Comprehensive Problem 2 Part 1 and Part 2: Pollsade Creek Co. is a retall business that uses the perpetual Inventory system. The account balances for Palisade Creek as of May 1, 2016 (unless otherwise Indicated), are as follows. Assume all accounts have normal balances. 110 Cash 583,600 312 Dividends $135,000 112 Accounts Recevable 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 11B 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 Part 1: Journalize the transactions below for May, the last month of the fiscal year. If an amount box does not require an entry, leave it blank May 30: Received cash from sale of May 20 plus freight paid on May 21. Dutation Dat Crudit May 30 Cash 111,200 Accounts Receivable-Crescent Co. 111,200 Post Ref. May 31: Pald for purchase of May 21, less return of May 24. Date Description Debit Credit May 31 Accounts Payable-Osterman Co. 82,170 Cash 82,170 V Part 2: Using the attached spreadsheet, post the journal entries from Part 1 to the general ledger, Extend the month-end balances to the appropriate columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidio ledgers Few Che Work Identify what account is used and then what type of account is used. Every account is either an asset, itability, stockholders' equity, dividends, revenue, or expense account. Then determine whether the account increases or decreases. Each increase or decrease is recorded as a debit or cre following the rules of debit and credit. Remember, total debits should equal total credits in your entry Accounts Receivable-Crescent Co. 111,200 v May 31: Pald for purchase of May 21, less return of May 24. Pout Da Description Rat Debit Credit May 31 Accounts Payable-Osterman Co. 82,170 Cash 82,170 Part 2: Using the attached spreadsheet, post the journal entries from Part 1 to the general ledger, Extend 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. Feedback Check My Woo Identify what account is used and then what type of account is used. Every account is either an asset, liability, stockholders' equity, dividends, revenue, or expense account. Then determine whether the account increases or decreases. Each increase or decrease is recorded as a debit or credit following the rules of debit and credit. Remember, total debits should equal total credits in your entry.