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Continuing Problem Instructions
The Continuing Problem for Palisade Creek Co.. is in your book at the end of Chapter 5 on pages 280-281. We are going to complete instructions 1, 2, 4, 5, 6, 8, 9, and 10 on page 281. You should skip instructions 3 and 7 as those will be complete on the 10 column worksheet. This problem has you prepare the entries for the month of May 2016 transactions for Palisade Creek Co. The problem has you go through the adjusting entries, closing entries, worksheet, and financial statements. This problem brings together the complete, accounting cycle in one problem and is much like doing it in the "real world".
I will answer questions and help you with the problems. This is a learning experience and I want you to understand the problem and concepts.
Read the instructions on page 281 including the following information:
Step 1: There are forms you can use set up the accounts for you. The forms are attached in a separate file. You will need to modify the forms to fit the information in this problem.
Step 2: Prepare the journal entries for the May1 through May 31 transactions. Now post the journal entries to the general ledger accounts (don't forget the post references).
Step 3: Post the journal entries to the general ledger,extending the month-end balances to the appropriate balance columns after all posting is completed (before adjusting entries are make).
Step 4: Prepare the Trial Balance as of May 31 on a ten column work sheet listing all accounts, in order, from the general ledger accounts. Complete the work sheet using the adjusting entries shown on page 268 instruction # 4.
Step 5: Prepare the financial statements from the worksheet. (Multiple-step income statement, retained earnings, and report form balance sheet.)
Step 6: Journalize and post the adjusting entries.
Step 7: Prepare the closing entries in journal format. Now, post the closing entries to the general ledger accounts. Indicate closed accounts by inserting a line in both balance columns opposite the closing entry. Insert the new balance in the retained earnings account.
Step 8: Prepare the Post-Closing Trial Balance from the general ledger accounts. You do not have to enter accounts with a zero balance.
The problem will be due on April 16th, by 11:55 PM.. It will count as 20% of your final grade. Any problems turned in late will have 5 points per day deducted from the grade. After the third day the grade is zero on the comprehensive problem.
CHECK FIGURES:
Net Income..............................................   $ 741,855
Total Assets.............................................  $1,458,175 (Balance Sheet)Â
Worksheet -total Trial Balance Column........  $6,210,625 (Unadjusted)Â
Total for the adjustments.......................... $ 158,350
Total for the Adjusted Trial Balance columns..$6,238,225
Post Closing Trial Balance.......................... $ 1,528,875
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