Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pls Help The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson company uses a perpetual inventory system. It categorizes the

Pls Help

The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation ExpenseStore Equipment, Sales Salaries Expense, Rent ExpenseSelling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative.

NELSON COMPANY Unadjusted Trial Balance January 31
Debit Credit
Cash $ 17,800
Merchandise inventory 12,500
Store supplies 5,500
Prepaid insurance 2,700
Store equipment 42,900
Accumulated depreciationStore equipment $ 19,700
Accounts payable 13,000
Common stock 5,000
Retained earnings 26,000
Dividends 2,150
Sales 114,600
Sales discounts 1,850
Sales returns and allowances 2,200
Cost of goods sold 38,000
Depreciation expenseStore equipment 0
Sales salaries expense 14,100
Office salaries expense 14,100
Insurance expense 0
Rent expenseSelling space 7,500
Rent expenseOffice space 7,500
Store supplies expense 0
Advertising expense 9,500
Totals $ 178,300 $ 178,300

Additional Information:

Store supplies still available at fiscal year-end amount to $1,850.

Expired insurance, an administrative expense, is $1,500 for the fiscal year.

Depreciation expense on store equipment, a selling expense, is $1,575 for the fiscal year.

To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,100 of inventory is still available at fiscal year-end.

4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. (Round your answers to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Getting Clinical Audit Right To Benefit Patients

Authors: Healthcare Quality

1st Edition

1873543069, 978-1873543061

More Books

Students also viewed these Accounting questions

Question

differentiate the function ( x + 1 ) / ( x ^ 3 + x - 6 )

Answered: 1 week ago