NELSON COMPANY Unadjusted Trial Balance January 31 Debit Credit Cash $22,000 Merchandise inventory 14,500 Store supplies 5,400 Prepaid insurance 2,500 Store equipment 43,000 Accumulated depreciation-Store equipment $ 18,950 Accounts payable 15,000 3. Nelson, Capital 37,000 3. Nelson, Withdrawals 2,050 Sales 115,500 Sales discounts 2,050 Sales returns and allowances 2,050 Cost of goods sold 38,000 Depreciation expense-Store equipment e Sales salaries expense 14,300 Office salaries expense 14,300 Insurance expense e Rent expense-Selling space 8,500 Rent expense-office space 8,500 Store supplies expense Advertising expense Totals Additional Information: 9,300 $186,450 $186,450 a. Store supplies still available at fiscal year-end amount to $2,750 b. Expired Insurance, an administrative expense, is $1,700 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 $10.600 of Inventory I available at fiscal year-end 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. (Round your answers to 2 decimal p Current ratio Acid-test ratio Gross margin ratio 11

NELSON COMPANY Unadjusted Trial Balance January 31 Debit Credit Cash $22,000 Merchandise inventory 14,500 Store supplies 5,400 Prepaid insurance 2,500 Store equipment 43,000 Accumulated depreciation-Store equipment $ 18,950 Accounts payable 15,000 3. Nelson, Capital 37,000 3. Nelson, Withdrawals 2,050 Sales 115,500 Sales discounts 2,050 Sales returns and allowances 2,050 Cost of goods sold 38,000 Depreciation expense-Store equipment e Sales salaries expense 14,300 Office salaries expense 14,300 Insurance expense e Rent expense-Selling space 8,500 Rent expense-office space 8,500 Store supplies expense Advertising expense Totals Additional Information: 9,300 $186,450 $186,450 a. Store supplies still available at fiscal year-end amount to $2,750 b. Expired Insurance, an administrative expense, is $1,700 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 $10.600 of Inventory I available at fiscal year-end 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. (Round your answers to 2 decimal p Current ratio Acid-test ratio Gross margin ratio 11

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.1P: Purchase-related transactions The following selected transactions were completed by Epic Co. during...

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TB SA Qu. 16-59 (Static) Complete: Complete: Current Assets Cash Accounts receivable Prepaid rent Merchandise inventory Total current assets $ Amount $ $ $ 12,000 9,000 5,000 28,000 Round to Nearest Hundredth Percent % % % % 100 %
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:Dec 31 20Y9 Dec 31 20Y8ASSETSCash $ 70,720 $ 47,940Accounts Receivable 207,230 188,190Inventories 298,520 289,850Investments - 102,000Land 295,800 -Equipment 438,600 358,020Accumulated Depreciation-Equipment (99,110) (84,320)Total Assets $ 1,211,760 $ 901,680LIABILITIES AND STOCKHOLDERS' EQUITYAccounts Payable $ 205,700 $ 194,140Accrued Expenses Payable (operating expenses) 30,600 26,860Dividends Payable 25,500 20,400Common Stock, $1 par 202,000 102,000Paid-in Capital; Excess of issue price over par-common stock 354,000 204,000Retained Earnings 393,960 354,280Total Liabilities and Stockholders Equity: $ 1,211,760 $ 901,680Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:A. Equipment and land were acquired for cashB. There were no disposals of equipment during the year.C. The investments were sold for $91,800 cash.D. The common stock was…
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A L E Inventory 15000 A/R 20000 Prepaid rent 2000 Cash 100000 Building 10000 Payables 20000 Capital 110000 Retained earnings 17000 Total 147000 Total 147000 The company concluded a 6 month contract with customers for providing services, and required advance cash payment 60000$ for the whole contract amount. Customers fulfilled the requirement and paid the stated amount. Company received back the 60% of receivables, and paid out the payables' full amount. Purchased an equipment by the price 12000$, 50% was paid in cash. Obtained inventory by the price 60000$, and paid 80% in cash to suppliers. During the week 70%of inventory was realized with 70% markup. Customers paid 100% of the price in cash. The depreciation for the building per month was calculated as 500$, and for equipment 300$. Company accrued the following expenses: salaries 12000$, utilities 600$, profit tax 20%. At the end of the month company recognized the rent expenses (20%) and appropriate part…
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prepare consolidated financial statement
Adjustment for Merchandise Inventory Using T Accounts: Periodic Inventory System with Sales Returns and Allowances Sam Edwards owns a business called Sam's Stuff. A physical count determined his ending inventory as of December 31, 20-- was $72,000. Based on past experience, Sam estimates that $5,000 of sales from this year will be returned next year. The cost of the merchandise expected to be returned is $3,000. Using the partial Trial Balance provided below, set up T accounts for Merchandise Inventory, Estimated Returns Inventory, Customer Refunds Payable, Sales Returns and Allowances, and Income Summary and prepare the year-end adjustments for Merchandise Inventory and related accounts. TRIAL BALANCE (PARTIAL) DEBIT CREDIT Merchandise Inventory 60,000.00 Estimated Returns Inventory 2,500.00 Customer Refunds Payable 4,000.00 Sales Returns and Allowances 20,000.00 Income Summary For grading purposes use the labels shown and enter transactions in alphabetical order. TB Trial balance…
B C M&S Partnership 1a Gross receipts Gross receipts or sales 534.410 b Less returns and allowances Cost of goods sold (attach Form 1125-A) Account Trial Balance December 31, 2023 Debit Credit Cash 23,140 Income Accounts and notes receivable 29,480 Furniture 68,910 8 Accumulated depreciation-furniture Prepaid assets 6,750 2,660 Long-term notes payable 14,700 Accounts payable 8,010 Other accrued current liabilities Stephanie Mulder, Capital 4,370 114,400 Stephanie Mulder, Drawing 22,840 53,550 Juan Scully, Drawing Sales 5,330 X 534,410 Sales returns and allowances 6,480 8,260 Business interest expense Partners' salaries 370,810 560 Deductions (see instructions for limitations) Gross profit. Subtract line 2 from line 1c. Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) Net farm profit (loss) (attach Schedule F (Form 1040)) Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (loss) (attach statement) Total income (loss).…
Extract of balances as at 30 June 2024: Inventory Bank (positive) Trade receivables control Vehicles at cost R R106,800 R293,600 R199,200 R708,200 Equipment at cost R209,300 Factory building at cost R575,100 Accumulated depreciation: Vehicles R41,700 Accumulated depreciation: Equipment R68,400 Allowance for credit losses R3,000 Trade payables control R119,800 Capital: Khanyisa R431,500 Capital: Zinhle R246,700 Current account: Khanyisa (Cr: 1 July 2023) R13,300 Current account: Zinhle (Dr: 1 July 2023) R9,400 2. Supplementary information: 2.1 Details of the partnership agreement between the partners: Time left 1:31:46 2.1.1 An annual interest rate of 6% is applied to the opening balances of the partners' capital and current accounts. 2.1.2 Profits and losses are shared equally between Khanyisa and Zinhle. 2.1.3 The monthly salaries to which the partners are entitled are R15 000 and R20 000 for Khanyisa and Zinhle respectively. As of 30 June 2024, the salaries paid to the partners were…
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1. Based on the following information: Trial balance trade investment Equity Sale Sale allowances trade payables Cos CAD $ 300,000.00 $2,000,000.00 $3,000,000.00 $ 250,000.00 $ 800,000.00 $ 800,000.00 long term debt Cash $ 300,000.00 salary advance slow moving Inventory $ $1,000,000.00 70,000.00 $ 300,000.00 fast moving inventories $ 500,000.00 Pre payment $ 500,000.00 bad debt receivables non current asset long term investment $ (50,000.00) $ 400,000.00 $2,000,000.00 $ 450,000.00 Accumulated Depreciation $ (800,000.00) Calculate the following ratios: a. Company working capital b. Current ratio c. Quick ratio d. Inventory turnover e. Receivable turnover f. Asset turn over
Purchase-related transactions The following selected transactions were completed by Epic Co. during August of the curr ent year: Aug. 3. Purchased merchandise on account for $33400, terms FOB destination. 2/10. n/30. 9. Issued debit memorandum for $2500 ($2450 net of 2% discount) for merchandise from the August 3 purchase that was damaged in shipment. 10. Purchased merchandise on account, $25,000, terms FOB shipping point, n/com. Paid $600 cash to the freight company for delivery of the merchandise. 13. Paid for invoice of August 3, less debit memorandum of August 9 31. Paid for invoice of August 10. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Epic Co. Identify each transaction by date.