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Required information [The following information applies to the questions displayed below.] The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON
Required information [The following information applies to the questions displayed below.] The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY Unadjusted Trial Balance January 31, 2017 Debit Credit Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable 0. Nelson, Capital . Nelson, Withdrawals Sales Salesdiscounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense Totals $ 4,750 15,000 5,900 2,500 42,800 $ 17,700 16,000 19,000 2,250 114,650 1,950 2,000 38,000 29,000 14,000 9,200 $167,350 $167,350 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: a. Store supplies still available at fiscal year-end amount to $2,150 b. Expired insurance, an administrative expense, for the fiscal year is $1,700 c. Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,200 of inventory is still available at fiscal year-end
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