2 questions! Please and thank you!

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Question #9

Required information

[The following information applies to the questions displayed below.]

The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.

NELSON COMPANY Unadjusted Trial Balance January 31, 2017
	Debit			Credit
Cash	$	8,150
Merchandise inventory		14,500
Store supplies		5,500
Prepaid insurance		2,600
Store equipment		42,800
Accumulated depreciationStore equipment				$	17,850
Accounts payable					16,000
J. Nelson, Capital					18,000
J. Nelson, Withdrawals		2,100
Sales					114,550
Sales discounts		1,850
Sales returns and allowances		2,000
Cost of goods sold		38,000
Depreciation expenseStore equipment		0
Salaries expense		27,200
Insurance expense		0
Rent expense		12,000
Store supplies expense		0
Advertising expense		9,700
Totals	$	166,400		$	166,400

Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system.

Additional Information:

Store supplies still available at fiscal year-end amount to $2,500.

Expired insurance, an administrative expense, for the fiscal year is $1,550.

Depreciation expense on store equipment, a selling expense, is $1,575 for the fiscal year.

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.

Required:

1. Using the above information prepare adjusting journal entries: 2. Prepare a multiple-step income statement for fiscal year 2017. 3. Prepare a single-step income statement for fiscal year 2017.

4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2017. (Round your answers to 2 decimal places.)

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Then the image that has #5 on the top left corner I am having trouble with. Thank you!

Answer is not complete. Complete this questions by entering your answers in the below tabs. Required 1qed 2 Required Using the above information prepare adjusting journal entries No Transaction General Journal Debit Credit Store supplies expense 2,500 Store supplies 2,500 X 2 Insurance expense 1,550 Prepaid insurance 1,550 1,575 Depreciation expense-Store equipment Accumulated depreciation-Store equipment C. 4 Cost of goods sold 10,200 Merchandise inventory 10,200