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Required information The following information applies to the questions displayed below.) The following unsdjusted 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 unsdjusted 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 Expense-Store Equipment, Sales Salories Expense, Rent Expense-Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. NELSON COMPANY Unadjusted Traal Balance January 31 Debat Credit Cash $ 26,988 Merchandise inventory 14,820 Store supplies 5,500 Prepaid insurance 2,220 Stare equipnent 42.780 Accumulated depreciation Store equipment $ 19,550 Accounts payable 16,000 Common stock 5,000 Retained earnings 22,080 Dividends 2.ee Sales 115,100 Sales discounts 1.95e Sales returns and allowances 2.150 Cost of goods sold 38.2 Depreciation expense-Store equiperent Sales salaries expense 14,358 office salaries expenso 14.350 Insurance expense Rent expense Selling space 7.620 Rent expense office space 7.000 Store supplies expense Advertising expense 9.580 Totals $187,652 $187,650 Additional Information: a. Store supplies still available at fiscal year-end amount to $2.900. b. Expired insurance, an administrative expense, is $1.650 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1.500 for the fiscal year. d. 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 retio, scid-test ratio, and gross margin ratio es of January 31. (Round your answers to 2 decimal places.) Current rati Acid-test ratio Grass margin ratio 51
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