4 5 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 $ 32,550 Merchandise inventory 14,000 Store supplies 5,600 Prepaid insurance 2,300 Store equipment 42,900 Accumulated depreciationStore equipment $ 18,000 Accounts payable 17,000 Common stock 3,200 Retained earnings 16,000 Dividends 2,050 Sales 141,750 Sales discounts 1,850 Sales returns and allowances 2,200 Cost of goods sold 38,000 Depreciation expenseStore equipment 0 Salaries expense 29,000 Insurance expense 0 Rent expense 16,000 Store supplies expense 0 Advertising expense 9,500 Totals $ 195,950 $ 195,950 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 $1,800 Expired insurance, an administrative expense, for the fiscal year is $1,500 Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year To estimate shrinkage, a physical count of ending merchandise inventory is taken It shows $10,800 of inventory is still available at fiscal year end Using the above information prepare adjusting journal entries Prepare a multiple step income statement for fiscal year 2017 Prepare a single step income statement for fiscal year 2017 Additional Information Store supplies still available at fiscal year end amount to $1,800 Expired insurance, an administrative expense, for the fiscal year is $1,500 Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year To estimate shrinkage, a physical count of ending merchandise inventory is taken It shows $10,800 of inventory is still available at fiscal year end 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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4-5 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

4-5 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	$	32,550
Merchandise inventory		14,000
Store supplies		5,600
Prepaid insurance		2,300
Store equipment		42,900
Accumulated depreciationStore equipment			$	18,000
Accounts payable				17,000
Common stock				3,200
Retained earnings				16,000
Dividends		2,050
Sales				141,750
Sales discounts		1,850
Sales returns and allowances		2,200
Cost of goods sold		38,000
Depreciation expenseStore equipment		0
Salaries expense		29,000
Insurance expense		0
Rent expense		16,000
Store supplies expense		0
Advertising expense		9,500
Totals	$	195,950	$	195,950

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 $1,800.
Expired insurance, an administrative expense, for the fiscal year is $1,500.
Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year.
To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,800 of inventory is still available at fiscal year-end.
Using the above information prepare adjusting journal entries:
Prepare a multiple-step income statement for fiscal year 2017
Prepare a single-step income statement for fiscal year 2017.

Additional Information:

Store supplies still available at fiscal year-end amount to $1,800.
Expired insurance, an administrative expense, for the fiscal year is $1,500.
Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year.
To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,800 of inventory is still available at fiscal year-end.

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