GL0403 (Algo) - Based on Problem 4-5A LO A1, P3, P4 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. a. Store supplies still available at fiscal year-end amount to $2,000. b. Expired insurance, an administrative expense, for the fiscal year is $1,500. c. Depreciation expense on store equipment, a selling expense, is $6,400 for the fiscal year d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $9.870 of inventory is still available at fiscal year-end. Journal entry worksheet < 1 2 3 4 5 6 7 8 Store supplies still available at fiscal year-end amount to $2,000. Note: Enter debits before credits. Date Account Title Debit Credit 2,000 2,000 January 31 Store supplies expense Store supplies Journal entry worksheet < 1 2 3 4 5 6 7 8 Expired insurance, an administrative expense, for the fiscal year is $1,500. Note: Enter debits before credits. Date January 31 Account Title Debit Credit Insurance expense 1,500 Prepaid insurance 1,500 Record entry Clear entry View general journal > 3 5 6 8 Depreciation expense on store equipment, a selling expense, is $6,400 for the fiscal year. Note: Enter debits before credits. Date Account Title January 31 Depreciation expense - Store equip. Accumulated depreciation - Store equip. Debit Credit 6,400 6,400 + To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $9,870 of inventory is still available at fiscal year-end. Note: Enter debits before credits. Date Account Title Debit Credit January 31 Cost of goods sold 9,870 Merchandise inventory 9,870 Record entry Clear entry View general journal Record the entry to close income statement accounts with credit balances. Note: Enter debits before credits. Date January 31 Sales Income summary Account Title Debit Credit Record entry Clear entry View general jour Record the entry to close income statement accounts with debit balances. Note: Enter debits before credits. Date January 31 Account Title Debit Credit Journal entry worksheet < 1 2 3 4 5 6 7 8 Record the entry to close income summary. Note: Enter debits before credits. Date January 31 Account Title Debit Credit Journal entry worksheet < 1 2 3 5 6 7 8 Record the entry to close the withdrawals account. Note: Enter debits before credits. Date January 31 Account Title Debit Credit Record entry Clear entry View general journal Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation - Store equip Accounts payable Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equip. Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense Total Account Title mpany Trial Balance January 31, 2021 Debit Credit 9,800 630 4,000 900 64,000 35,200 11,000 6,000 28,500 4,300 117,000 3,500 3,700 44,870 6,400 30,000 1,500 12,000 2,000 10,100 $ 197,700 $ 107,700 eferences Net sales Gross profit Lewis Company Income Statement For Year Ended January 31, 2021 $ 0 $ 0 0 0 0 0 Current Assets Plant assets Lewis Company Balance Sheet January 31, 2021 Assets Total assets Liabilities and Equity Liabilities Equity $ 0 0 0 0 $ 0 0 $ 0 0 $ 0 (4,300) (4,300) Total liabilities and equity $ (4,300) < Single Step IS Ratios >> Current ratio Acid-test ratio Gross margin ratio