"The fiscal year-end unadjusted trial balance for Sanchez Company is found on the trial balance tab. Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Sanchez Company uses a perpetual inventory system. Descriptions of items that require adjusting entries on January 31, 2019, follow.

1. Store supplies still available at fiscal year-end amount to $2,600.
2. Expired insurance, an administrative expense, for the fiscal year is $1,740.
3. Depreciation expense on store equipment, a selling expense, is $6,600 for the fiscal year.
4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,000 of inventory is still available at fiscal year-end."

(NOTE: I'VE DONE MOST OF THE WORK)

1A.) Journal Entry problem - help with the uploaded photos only

1B.) Ratios

Extra info that might help solve problem:

Record the entry to close income statement accounts with debit balances. Note: Enter debits before credits. Credit Date Jan 31 Debit 118,840 Account Title Income summary Depreciation expense - Store equip. Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense Cost of goods sold Sales discounts Sales retums and allowances 36,300 34,000 1,740 13,600 5,200 10.700 39,700 3,900 4,100 Record the entry to close Income summary. Note: Enter debits before credits. Account Title Debit Credit Date Jan 31 Income summary Record the entry to close the withdrawals account. Note: Enter debits before credits. Account Title Credit Date Jan 31 Debit 4,800 Dividends Cash 4,800 Compute the following ratios as of January 31, 2017. Round each ratio to 2 decimal places. Dates: Jan 31 to: Jan 31 1.80 Current ratio Acid-test ratio Gross margin ratio 0.70 0.68 Unadjusted General Ledger Account Cash Merchandise inventory Debit Credit No. Debit Credit No. Date Date Jan 31 Balance 14,200 Balance 11,700 Jan 31 Store supplies Debit Credit Prepaid insurance Debit Credit No. No. Date Jan 31 Balance 7,800 Date Jan 31 Balance 2,800 Store equipment Debit Credit No. No. Date Jan 31 Balance 66,000 Accumulated depreciation - Store equip. Date Debit Credit Jan 31 Balance 29,700 Common stock Accounts payable Debit Credit No. No. Date Debit Credit Date Jan 31 Balance 13,400 Balance 8,400 Jan 31 Dividends Retained earnings Debit Credit No. Date No. Debit Credit Balance 32,100 Date Jan 31 Balance 4,800 Jan 31 Sales Sales discounts Debit Credit No. Date Debit Credit No. Date Balance 129,000 Balance 3,900 Jan 31 Jan 31 Sales returns and allowances Cost of goods sold No. Date Debit Credit No. Date Debit Credit Balance 4,100 Balance 39,000 Jan 31 Jan 31 Rent expense Salaries expense Debit Credit No. Date No. Date Debit Credit Balance 34,000 Balance 13,600 Jan 31 Jan 31 Advertising expense Debit Credit No. Date Balance 10,700 Jan 31 Unadjusted Dates: Jan 31 to: Jan 31 Sanchez Company Trial Balance January 31, 2017 Account Title Credit $ Debit 14,200 11,700 7,800 2.800 66,000 29,700 13,400 8,400 32,100 Cash Merchandise Inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation - Store equip. Accounts payable Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Salaries expense Rent expense Advertising expense Total 4,800 129,000 3,900 4,100 39,000 34,000 13,600 10,700 212,600 $ S 212,600