Nelson Company
Adjusted Trial Balance
31-Dec-18
	Debit	Credit
Cash	$3,000
Merchandise Inventory	2,500
Store Supplies	5,000
Prepaid Insurance	2,000
Store Equipment	42,900
Accumulated Depreciation		$15,250
Accounts Payable		6,991
Common Stock		5,000
Retained Earnings		27,000
Dividends	2,200
Sales		101,284
Sales Discounts	2,600
Sales Returns and Allowances	1,200
Cost of Goods Sold	36,400
Depreciation Expense Store Equipment	1,525
Salaries Expense	32,000
Insurance Expense	1,200
Rent Expense	13,000
Store Supplies Expense	1,000
Advertising Expense	9000
Totals	155,525	155,525
Nelson Company
Unadjusted Trial Balance
31-Dec-19
	Debit	Credit
Cash	$1,000
Merchandise Inventory	12,500
Store Supplies	5,800
Prepaid Insurance	2,400
Store Equipment	42,900
Accumulated Depreciation		$15,250
Accounts Payable		10,000
Common Stock		5,000
Retained Earnings		27,000
Dividends	2,200
Sales		111,950
Sales Discounts	2,000
Sales Returns and Allowances	2,200
Cost of Goods Sold	38,400
Depreciation Expense Store Equipment	0
Salaries Expense	35,000
Insurance Expense	0
Rent Expense	15,000
Store Supplies Expense	0
Advertising Expense	9,800
Totals	169,200	169,200

1. Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. Nelson Company uses a perpetual inventory system.
2. Prepare adjusting journal entries and an adjusted entries worksheet to reflect each of the following:
   1. Store supplies still available at fiscal year-end amount to $1,750.
   2. Expired insurance, an administrative expense, for the fiscal year is $1,400.
   3. Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscal year.
   4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,900 of inventory is still available at fiscal year-end.
3. Prepare a multiple-step income statement for fiscal years 2019 (vertical analysis) and a statement of retained earnings at December 31, 2019. .
4. Prepare a classified balance sheet at December 31, 2019. Use horizontal Analysis in creation of this statement.