Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare journal entries to record the following The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY Unadjusted Trial Balance

Prepare journal entries to record the following

The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.

NELSON COMPANY Unadjusted Trial Balance January 31, 2016
Debit Credit
Cash $ 24,250
Merchandise inventory 13,000
Store supplies 5,200
Prepaid insurance 2,400
Store equipment 42,600
Accumulated depreciationStore equipment $ 19,650
Accounts payable 12,000
Common stock 18,000
Retained earnings 20,000
Dividends 2,200
Sales 115,600
Sales discounts 1,800
Sales returns and allowances 2,100
Cost of goods sold 38,000
Depreciation expenseStore equipment 0
Salaries expense 28,500
Insurance expense 0
Rent expense 16,000
Store supplies expense 0
Advertising expense 9,200
Totals $ 185,250 $ 185,250

Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system.

Additional Information:

Store supplies still available at fiscal year-end amount to $1,950.

Expired insurance, an administrative expense, for the fiscal year is $1,700.

Depreciation expense on store equipment, a selling expense, is $1,625 for the fiscal year.

To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,500 of inventory is still available at fiscal year-end.

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_2

Step: 3

blur-text-image_3

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

ISE Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge Ch

11th Edition

1265083924, 9781265083922

More Books

Students also viewed these Accounting questions

Question

3.4 Define HRIS and describe its main components.

Answered: 1 week ago