Required information Required 1 Required 2 Required 3 Prepare a multiple-step income statement for the year ended January 31. NELSON COMPANY Income Statement For Year Ended January 31 Expense Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses Required 1 Required 3 > Required information Problem 5-5A Preparing adjusting entries and income statements; computing gros and current ratios LO A1, A2, P3, P4 The following information applies to the questions displayed below.) The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company, Nelso perpetual Inventory system. It categorizes the following accounts as selling expenses: depreciat equipment, sales salaries expense, rent expense-selling space, store supplies expense, advert categorizes the remaining expenses as general and administrative. NELSON COMPANY Unadjusted Trial Balance January 31 Credit Debit $ 4,900 12,500 5,400 2,100 42,700 $ 18,700 15,000 18,000 2,150 115,450 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable 3. Nelson, Capital 3. Nelson, Withdrawals 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 Totals 1,800 2,200 38,000 15,880 15,000 8,000 8,000 9,400 $167, 150 $167,150 Additional Information: a. Store supplies still available at fiscal year-end amount to $2.250. b. Expired insurance, an administrative expense, for the fiscal year is $1,600. c. Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10 available at fiscal year-end. Required information Problem 5-5A Preparing adjusting entries and income statements; computing gros and current ratios LO A1, A2, P3, P4 The following information applies to the questions displayed below.) The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company, Nelso perpetual Inventory system. It categorizes the following accounts as selling expenses: depreciat equipment, sales salaries expense, rent expense-selling space, store supplies expense, advert categorizes the remaining expenses as general and administrative. NELSON COMPANY Unadjusted Trial Balance January 31 Credit Debit $ 4,900 12,500 5,400 2,100 42,700 $ 18,700 15,000 18,000 2,150 115,450 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable 3. Nelson, Capital 3. Nelson, Withdrawals 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 Totals 1,800 2,200 38,000 15,880 15,000 8,000 8,000 9,400 $167, 150 $167,150 Additional Information: a. Store supplies still available at fiscal year-end amount to $2.250. b. Expired insurance, an administrative expense, for the fiscal year is $1,600. c. Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10 available at fiscal year-end.
