The following unadjusted trial balance is prepared at financial year-end for Rex Company. REX COMPANY Unadjusted Trial Balance January 31,2015 Debit Credit $26,050 13,500 5,700 2,500 42,500 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable T. Rex, Capital T. Rex, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense Store equipment Salaries expense Insurance expense Rent expense $18,450 16,000 37,000 2,250 116,350 1,800 2,200 38,000 0 30,000 14,000 Store supplies expense Advertising expense 9,300 Totals $187,800 $187,800 Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. Rex Company uses a perpetual Inventory system a. Store supplies still available at financial year-end amount to $2,400. b. Expired insurance, an administrative expense, for the financial year is $1,500. c. Depreciation expense on store equipment, a selling expense, is $1,625 for the financial year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,100 of inventory is still available at financial year-end. References