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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OkyOTcw/a/MjUwNDEyNDM20TEx/details Particulars Credit (RM) 48,400 Debit (RM) Capital Drawings Trade receivables Trade payables Sales Purchases Sales returns Purchases retums Wages and salaries Discounts allowed Discounts received Provision for doubtful debts Insurance Inventory as at 1 September 2018 Utilities 3,500 9,000 12,500 40,400 31,000 300 250 5,600 120 200 300 700 2,400 950 350 10,000 3,000 20,000 Rates Premises Fixtures and fittings Motor van Cash in hand Cash at bank TOTAL 330 14,800 102.050 102.050 Additional information as at 31 August 2019: i. Inventory as at 31 August 2019 amounted RM3,300 ii. An entity from whom there is accounts receivables of RM200 was unable to settle his debt and this amount is to be written off as bad debts. iii. The provision for doubtful debts is 1% of the outstanding trade receivables. iv. The owner took RM100 worth of goods from the business for his own use Required: a) Statement of Profit or Loss and Others Comprehensive Income for the year…
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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…
Complete: Round to Nearest Current Assets Amount Hundredth Percent Cash $ 12,000 % Accounts receivable 9,000 % Prepaid rent Merchandise inventory 5,000 $ 28.000 Total current assets 100 %
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