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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Lucky House Ltd Trial Balance As at 30 September 2020 Account Debit(£) Credit(£)Cash at Bank 5,850Capital Account 15,000Machine 8,100Raw Materials 2,655Stationery 250Accounts Payable 6,545Rent 950Business Insurance 38Prepayments 1,362Sales Income 17,550Cost of Goods Sold 11,345Accounts Receivable 4,500Drawings 4,000Telephone 45Depreciation 135Accumulated Depreciation 135 Total 39,230 39,230 Prepare a statement of cash flow ?
Lucky House Ltd Trial Balance As at 30 September 2020 Account Debit(£) Credit(£)Cash at Bank 5,850Capital Account 15,000Machine 8,100Raw Materials 2,655Stationery 250Accounts Payable 6,545Rent 950Business Insurance 38Prepayments 1,362Sales Income 17,550Cost of Goods Sold 11,345Accounts Receivable 4,500Drawings 4,000Telephone 45Depreciation 135Accumulated Depreciation 135 Total 39,230 39,230 Prepare a Statement of Profit & Loss and Statement of…
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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…
sd Subject - Accounting
Chapter : Adjustment financial statements
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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…