5-3A Preparing adjusting entries and income statements; and computing gross margin, acid-test, and current ratios L.O. A1, A2, P3, P4 [The following information applies to the questions displayed below.] The following unadjusted trial balance is prepared at fiscal year-end for Rex Company. REX COMPANY Unadjusted Trial Balance January 31,2011 Debit Credit Cash $ 2,200 Merchandise inventory 11,500 Store supplies 4,800 Prepaid insurance 2,300 Store equipment 41,900 Accumulated depreciation