29 Received Tuina A 30 Paid Arotek Company the amount due from the iscal year end for Nelson Company The follow ing unadjusted trial balance is prepared at f Problem 5-3A Preparing adjusting entries and income statements and omputing gross margin, acid- test, and current ratios AT AZ P3 P NELSON COMPANY A NO January 31, 2013 $ 1,000 12,500 5.800 2,400 42,900 mhhe.comwdFAP21e 4 Store supplies s Prepaid insurance s 15.250 10.000 32,000 Store equipment Accumulated depreciation-Store equipment 8 Accounts paryable 9 J. Nelson, Capital 0 J. Nelson, Withdrawals 11 Sales 2 Sales discounts 13 Sales returns and alowances 2,200 111,950 2,000 2,200 38.400 Cost of goods sold 1s Depreciation expense-Store equipment 6 Salaries expense 17 Insurance expense 8 Rent expense e Store supplies expense 20 Advertising expense 21 Totals 35,000 15,000 9,800 Rent expense and salaries expense are equally divided between selling activities and the general ad administrative activities. Nelson Company uses a perpetual inventory system. Required 1. Prepare adjusting journal entries to reflect each of the following a. Store supplies still available at fiscal year-end amount to $1,750. b. Expired insurance, an administrative expense, for the fiscal year is $1,400. c. Depreciation expense on store equipment, a selling expense, is $1.525 for the fiscal year d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $1090 of inventory is still available at fiscal year-end ck 2) Gross profi $62,750 2. Prepare a multiple-step income statement for fiscal year 2013. o expenses $106 775 N 3. Prepare a single-step income statement for fiscal year 2013. 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2013. (Round a to two decimals.)