Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable Common stock Retained earnings Dividends NELSON COMPANY Unadjusted Trial Balance January 31 Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Sales salaries expense office salaries expense Insurance expense Rent expense-Selling space Rent expense-Office space Store supplies expense Advertising expense Totals Additional Information: Debit $ 19,800 14,500 5,300 2,600 42,500 2,250 2,000 2,200 38,000 0 14,600 14,600 0 9,000 9,000 0 9,200 $ 185,550 Credit $ 19,150 15,000 4,000 31,000 116,400 $ 185,550 a. Store supplies still available at fiscal year-end amount to $3,000. b. Expired insurance, an administrative expense, is $1,450 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,500 of inventory is still available at fiscal year-end.
Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable Common stock Retained earnings Dividends NELSON COMPANY Unadjusted Trial Balance January 31 Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Sales salaries expense office salaries expense Insurance expense Rent expense-Selling space Rent expense-Office space Store supplies expense Advertising expense Totals Additional Information: Debit $ 19,800 14,500 5,300 2,600 42,500 2,250 2,000 2,200 38,000 0 14,600 14,600 0 9,000 9,000 0 9,200 $ 185,550 Credit $ 19,150 15,000 4,000 31,000 116,400 $ 185,550 a. Store supplies still available at fiscal year-end amount to $3,000. b. Expired insurance, an administrative expense, is $1,450 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,500 of inventory is still available at fiscal year-end.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cash
Merchandise inventory.
Store supplies
Prepaid insurance
Store equipment
Accumulated depreciation-Store equipment
Accounts payable
Common stock
Retained earnings
Dividends
Sales
Sales discounts
Sales returns and allowances
Cost of goods sold
Depreciation expense-Store equipment
Sales salaries expense
office salaries expense
NELSON COMPANY
Unadjusted Trial Balance
January 31
Insurance expense
Rent expense-Selling space
Rent expense-office space
Store supplies expense
Advertising expense
Totals
Additional Information:
Problem 4-5A (Algo) Part 4
Current ratio
Acid-test ratio
Gross margin ratio
Debit
$ 19,800
14,500
5,300
2,600
42,500
2,250
1
2,000
2,200
38,000
0
14,600
14,600
0
9,000
9,000
0
9,200
$ 185,550
1
Credit
$ 19,150
15,000
a. Store supplies still available at fiscal year-end amount to $3,000.
b. Expired insurance, an administrative expense, is $1,450 for the fiscal year.
4,000
31,000
c. Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,500 of inventory is
still available at fiscal year-end.
116,400
$ 185,550
4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31.
Note: Round your answers to 2 decimal places.
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