Question
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY Unadjusted Trial Balance January 31, 2015 Debit Credit Cash $
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY Unadjusted Trial Balance January 31, 2015 Debit Credit Cash $ 29,450 Merchandise inventory 14,500 Store supplies 5,800 Prepaid insurance 2,100 Store equipment 42,800 Accumulated depreciationStore equipment $ 19,950 Accounts payable 16,000 Common stock 17,000 Retained earnings 23,000 Dividends 2,200 Sales 116,050 Sales discounts 2,050 Sales returns and allowances 2,100 Cost of goods sold 38,000 Depreciation expenseStore equipment 0 Salaries expense 30,200 Insurance expense 0 Rent expense 13,000 Store supplies expense 0 Advertising expense 9,800 Totals $ 192,000 $ 192,000 Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. Nelson Company uses a perpetual inventory system. Additional Information: a. Store supplies still available at fiscal year-end amount to $1,650. b. Expired insurance, an administrative expense, for the fiscal year is $1,400. c. Depreciation expense on store equipment, a selling expense, is $1,625 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,600 of inventory is still available at fiscal year-end. 2.value: 50.00 pointsRequired information 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2015. (Round your answers to 2 decimal places.)
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