Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable J. Nelson, Capital J. Nelson, Withdrawals 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: Current ratio Acid-test ratio Gross margin ratio Debit $ 29,250 13,500 5,000 2,300 42,500 2,300 1,850 2,300 38,000 0 13,000 13,000 109,250.00:1 0 6,500 6,500 :1 :1 9,400 $ 185,400 Credit a. Store supplies still available at fiscal year-end amount to $2,400. b. Expired insurance, an administrative expense, is $1,450 for the fiscal year. $ 16,150 16,000 37,000 116,250 c. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,200 of inventory is still available at fiscal year-end. $ 185,400 Problem 5-5A (Algo) Part 4 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. Note: Round your answers to 2 decimal places.
Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable J. Nelson, Capital J. Nelson, Withdrawals 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: Current ratio Acid-test ratio Gross margin ratio Debit $ 29,250 13,500 5,000 2,300 42,500 2,300 1,850 2,300 38,000 0 13,000 13,000 109,250.00:1 0 6,500 6,500 :1 :1 9,400 $ 185,400 Credit a. Store supplies still available at fiscal year-end amount to $2,400. b. Expired insurance, an administrative expense, is $1,450 for the fiscal year. $ 16,150 16,000 37,000 116,250 c. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,200 of inventory is still available at fiscal year-end. $ 185,400 Problem 5-5A (Algo) Part 4 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. Note: Round your answers to 2 decimal places.
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
J. Nelson, Capital
J. Nelson, Withdrawals
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 5-5A (Algo) Part 4
Current ratio
Acid-test ratio
Gross margin ratio
Debit
$ 29,250
13,500
5,000
2,300
42,500
109,250.00:1
2,300
1,850
2,300
38,000
0
:1
:1
13,000
13,000
0
6,500
6,500
0
9,400
$ 185,400
a. Store supplies still available at fiscal year-end amount to $2,400.
b. Expired insurance, an administrative expense, is $1,450 for the fiscal year.
c. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,200 of inventory is
still available at fiscal year-end.
Credit
$ 16,150
16,000
37,000
116,250
4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31.
Note: Round your answers to 2 decimal places.
$ 185,400
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