Company is found on the trial balance tab. Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Lewis Company uses a perpetual inventory system. Descriptions of items that require adjusting entries on January 31, 2019, follow. 1. Store supplies still available at fiscal year-end amount to $2,800. 1. Expired insurance, an administrative expense, for the fiscal year is $1,820. :. Depreciation expense on store equipment, a selling expense, is $6,000 for the fiscal year. 1. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,280 of inventory is still available at fiscal year-end. Answer is not complete. Requirement General Journal General Ledger Trial Balance Multiple Step Is Single Step IS Balance Sheet Ratios For transactions 1-4 prepare the required adjusting journal entries. For transactions 5-8, prepare the required closing entries. No Date Account Title Debit Credit 1 Jan 31 5,600 Store supplies expense Store supplies 5,600 2 Jan 31 1,820 Insurance expense Prepaid insurance 1,820 3 Jan 31 6,000 Depreciation expense - Store equip Accumulated depreciation - Store equip. 6,000 4 Jan 31 720 Cost of goods sold Merchandise inventory 720 5 Jan 31 133,000 Sales Income summary 133,000 6 Jan 31 122,240 Income summary Rent expense Advertising expense Store supplies expense Insurance expense Salaries expense Depreciation expense - Store equip. Sales discounts Sales returns and allowances Cost of goods sold OOOOOOOOOO 14,000 10,900 5,600 1,820 35,000 6,000 4,000 4,200 40,720 7 Jan 31 Income summary Retained earnings 8 Jan 31 Retained earnings Dividonda 9 Answer is not complete. nt General Journal General Ledger Trial Balance Multiple Step IS Single Step IS Balance Sheet Ratios al entry is posted automatically to the general ledger. Think of the general ledger as sorting all of your journal entries by account title. y of the individual amounts to return to the underlying journal entry. General Ledger Account Cash Merchandise inventory Date Debit Credit No. Date Debit Credit Balance Balance 20,300 Jan 31 Jan 31 Jan 31 12,000 11,280 4 720 Store supplies Prepaid insurance Date Debit Credit No. Date Debit Credit Jan 31 Balance 8,400 2,800 Jan 31 Jan 31 Balance 2,900 1,080 Jan 31 5,600 2 1,820 Store equipment Accumulated depreciation - Store equip. Debit Credit No. Date Debit Credit Date Jan 31 Balance 60,000 Jan 31 Balance 27,000 33,000 3 Jan 31 6,000 Accounts payable Common stock Date Debit Credit No. Date Debit Credit Balance 14,200 Balance 9,200 Jan 31 Jan 30 Retained earnings Dividends Debit Credit No. Debit Credit Date Jan 31 Balance 33,300 Date Jan 31 Balance 5,000 Sales Sales discounts Date Debit Credit Balance No. Date Debit Credit Balance 4,000 Jan 31 133,000 Jan 31 Cost of goods sold Sales returns and allowances Debit Credit Date Balance No. Date Debit Credit Balance 40,000 Jan 31 4,200 Jan 31 Jan 31 4 720 40,720 Salaries expense Depreciation expense - Store equip. Date Debit Credit Balance No. Date Debit Credit Balance 35,000 0 Jan 31 Jan 31 Jan 31 6,000 6,000 Insurance expense Rent expense Date Debit Credit No. Date Debit Credit Balance 0 1,820 Balance 14,000 Jan 31 Jan 31 Jan 31 1,820 Store supplies expense Debit Credit Advertising expense Debit Credit Date No. Date Balance 0 5,600 Balance 10,900 Jan 31 Jan 31 Jan 31 5,600 Descriptions of items that require adjusting entries on January 31, 2019, follow. 1. Store supplies still available at fiscal year-end amount to $2,800. 1. Expired insurance, an administrative expense, for the fiscal year is $1,820. :. Depreciation expense on store equipment, a selling expense, is $6,000 for the fiscal year. 1. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,280 of inventory is still available at fiscal year-end. Answer is not complete. Requirement General Journal General Ledger Trial Balance Multiple Step Is Single Step IS Balance Sheet Ratios Begin by selecting "Adjusted" from the drop-down below. I use the adjusted trial balance to prepare a multiple-step income statement. Rent expense and salaries expense are equally divided between selling activities and the general a administrative activities. 1 Adjusted Lewis Company Income Statement For Year Ended January 31, 2019 Sales 133,000 Sales discounts Sales returns and allowances 4,000 4,200 > 124,800 40,720 84,080 Net sales Cost of goods sold Gross profit Operating expenses Selling expenses Depreciation expense - Store equip. Salaries expense > 6,000 17,500 Rent expense Store supplies expense Advertising expense Total selling expenses General and administrative expenses 7,000 5,600 10,900 47,000 0 Total general and administrative expenses Total operating expenses Net income 47,000 37,080 > $ Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Lewis Company uses a perpetual inventory system. Descriptions of items that require adjusting entries on January 31, 2019, follow. 1. Store supplies still available at fiscal year-end amount to $2,800. 1. Expired insurance, an administrative expense, for the fiscal year is $1,820. i. Depreciation expense on store equipment, a selling expense, is $6,000 for the fiscal year. 1. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,280 of inventory is still available at fiscal year-end. Answer is not complete. Requirement General Journal General Ledger Trial Balance Multiple Step Is Single Step IS Balance Sheet Ratios Prepare a classified balance sheet as of January 31, 2017 Adjusted Lewis Company Balance Sheet January 31, 2019 Assets Current Assets Cash Merchandise inventory Store supplies Prepaid insurance 20,300 11,280 2,800 1,080 0 $ Total current assets 35,460 Plant assets Store equipment Accumulated depreciation - Store equip. Store equipment, net 60,000 (33,000) 27,000 $ Total assets 62,460 Liabilities and Equity Liabilities Accounts payable > 14,200 0 Total liabilities $ 14,200 9,200 Equity Common stock Retained earnings Total equity Total liabilities and equity 65,380 74,580 88,780 GLO403 - Based on Problem 4-5A LO C2, P3 The fiscal year-end unadjusted trial balance for Lewis Company is found on the trial balance tab. Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Lewis Company uses a perpetual inventory system. Descriptions of items that require adjusting entries on January 31, 2019, follow. 1. Store supplies still available at fiscal year-end amount to $2,800. 1. Expired insurance, an administrative expense, for the fiscal year is $1,820. :. Depreciation expense on store equipment, a selling expense, is $6,000 for the fiscal year. 1. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,280 of inventory is still available at fiscal year-end. Answer is not complete. Requirement General Journal General Ledger Trial Balance Multiple Step Is Single Step IS Balance Sheet Ratios Compute the following ratios as of January 31, 2017. Round each ratio to 2 decimal places. Dates: Jan 31 to: Jan 31 2.50 Current ratio Acid-test ratio 1.42 Gross margin ratio 67.40 X