NELSON COMPANY Unadjusted Trial Balance January 31 Credit Debit $1,000 12,500 5,800 2, 4ee 42, 9ee $ 15,250 18,000 5,800 27,000 2,200 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-store equipment Sales salaries expense Office salaries expense Insurance expense Rent expense-Selling space Rent expense-office space Store supplies expense Advertising expense Totais 111,950 2,000 2,280 38,400 e 17,500 17.500 8 7.500 7.500 8 9. Bee $169.2ee 5169,200 Additional Information a. Store supplies still available at fiscal year-end amount to $1750 b. Expired insurance, an administrative expense. Is $1.400 for the fiscal yeur c. Depreciation expense on store equipment, a seling expense is $1525 for the fiscal year. d. 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. Required: 1. Using the above information, prepare adjusting journal entries 2. Prepare o multiple step income statement that includes separate categories for net sales, cost of goods solo se expense gener and administrative expenses Required information NELSON COMPANY Income Statement For Year Ended January 31 Expenses Selling expenses Total seling expenses General and administrative expenses Tots genes and an expenses otseses NELSON COMPANY Unadjusted Trial Balance January 31 Credit Debit $ 1,800 12,599 5,890 2,480 42,900 $ 15,250 10,000 5,800 27,099 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation Store equipment Accounts payable Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Sales salaries expense office salaries expense Insurance expense Rent expense Selling space Rent expense-office space Store supplies expense nevertising expense 2,200 111,950 2,888 2,288 38, 4ee 17,500 17,58 7.50 588 5169, ze $169,25 Additional information o. Store sooo les stilaalae at isca year-end amount to $1.750. b. Expires Insurance en somia strative expense, is $1.400 for the scal year S. Depreciation expense on store egument seling exsense $$1525 to the rise d. To estimate Shenkage, a physics Count of eading merchandise entertazes Additional Information: a. Store supplies still available at fiscal year-end amount to $1.750. b. Expired insurance an administrative expense, is $1.400 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1.525 for the fiscal year d. 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
