Required information The following information applies to the questions displayed below The following unad usted trial balance is prepared at fiscal year-end'or Nelson Company Ne son company uses a perpetual Inventory system. It categorizes the following accounts as selling expenses Depreciation Expense-Store Equipment Sales Salaries Expense, Rent Expense-seng 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 $ 17,050 Merchandise inventory 12,500 Store supplies 5.500 Prepaid Insurance 2,500 Store equipment 42,900 Accumulated depreciation $ 16,100 Store equipment Accounts payable 12.000 Common stock 4,000 Retained earnings 30,000 Dividends 2,250 Sales 114,500 Sales discounts 1.800 Sales returna and allowances 2,200 Coat of goods sold 39,000 Depreciation expense Store equipment Sales salaries expense 14,300 Office salaries expense 14,300 Insurance expense Rent expense Selling space 7,500 Rent expense office space 7.500 Store supplies expense Advertising expense 9.300 Total $177,600 $177,600 Additional Information: a. Store supplies still available at fiscal year-end amount to $2.800 b. Expired insurance, an administrative expense, is $1350 for the fiscal year c. Depreciation expense on store equipment, a selling expense, is $1.650 for the "scal year d. To estimate shrinkage, a physical count of ending merchandise Inventory is taken. It shows $10.500 of Inventory still available at fiscal year-end. Required: 1. Using the above information, prepare adjusting journal entries 2. Prepare a mutple-step income statement for the year ended January 31 3. Prepare a single-step income statement for the year ended January 3L Required: 1. Using the above information, prepare adjusting journal entries. 2. Prepare a multiple-step income statement for the year ended January 31 3. Prepare a single-step income statement for the year ended January 31 Complete this question by entering your answers in the tabs below. Required Required Required Using the above information, prepare adjusting journal entries. View transaction list Journal entry worksheet Store supplies still available at fiscal year-end amount to $2,800. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Required 2 > Required: 1. Using the above information, prepare adjusting journal entries. 2. Prepare a multiple-step income statement for the year ended January 31 3. Prepare a single-step income statement for the year ended January 31 Complete this question by entering your answers in the tabs below. Required Required Required Prepare a multiple-step income statement for the year ended January 31. NELSON COMPANY Income Statement For Year Ended January 31 Expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses Required: 1. Using the above information, prepare ad usting journal entries. 2. Prepare a multiple-step income statement for the year ended January 31 3. Prepare a single-step income statement for the year ended January 31. Complete this question by entering your answers in the tabs below. Required Required Required Prepare a single-step income statement for the year ended January 31 NELSON COMPANY Income Statement For Year Ended January 31 Expenses Total expenses Required 2 Required 3 Required Information The following information applies to the questions displayed below) The following unad usted trial balance is prepared at fiscal year-end For Nelson Company Ne son company uses a perpetual Inventory system. It categorizes the following accounts as selling expenses Depreciation Expense-Store Equipment Sales Salaries Expense, Rent Expense-seng Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. Credit Cash $ 16,100 13.000 4.000 30.000 NELSON COMPANY Unadjusted Trial Balance January 31 Debit $ 17,050 Merchandise inventory 12,500 Store supplies 5.500 Prepaid Insurance 2,500 Store equipment 42,900 Accumulated depreciation Store equipment Accounts payable Common stock Retained earnings Dividends 2,250 Sales Sales discounts 1.800 Sales returns and allowancen 2,200 Coat of goods sold 38,000 Depreciation expense Store equipment Sales salaries expense 14,300 Office salaries expense 14,300 Insurance expense Rent expense Selling space 7.500 Rent expense office space 7,500 Store supplies expense Advertising expense 9,300 Totala $177,600 114,500 $177,600 Additional Information: a. Store supplies still available at fiscal year-end amount to $2.800 b. Expired Insurance, an administrative expense, is $1.350 for the fiscal year c. Depreciation expense on store equipment, a selling expense, is $1.650 for the "scal year. d. To estimate shrinkage, a physical count of ending merchandise Inventory s taken it shows $10.500 of Inventory still available at fiscal year-end. 4. Compute the current ratio, acio-test ratio, and gross margin ratio as of January 31. (Round your answers to 2 decimal places.) a. Store supplies still available at fiscal year-end amount to $2.800 b. Expired Insurance, an administrative expense, Is $1.350 for the fiscal year 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 $10.500 of Inventory 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.) Current ratio Acid-test ratio Gross margin ratio
