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The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson Company uses a perpetual inventory system. It categorizes the following accounts
The following unadjusted 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 ExpenseStore Equipment, Sales Salaries Expense, Rent ExpenseSelling 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 | $ 18,050 | |
Merchandise inventory | 14,000 | |
Store supplies | 5,700 | |
Prepaid insurance | 2,700 | |
Store equipment | 42,700 | |
Accumulated depreciationStore equipment | $ 18,250 | |
Accounts payable | 13,000 | |
J. Nelson, Capital | 36,000 | |
J. Nelson, Withdrawals | 2,200 | |
Sales | 116,550 | |
Sales discounts | 1,850 | |
Sales returns and allowances | 2,200 | |
Cost of goods sold | 38,000 | |
Depreciation expenseStore equipment | 0 | |
Sales salaries expense | 14,700 | |
Office salaries expense | 14,700 | |
Insurance expense | 0 | |
Rent expenseSelling space | 8,500 | |
Rent expenseOffice space | 8,500 | |
Store supplies expense | 0 | |
Advertising expense | 10,000 | |
Totals | $ 183,800 | $ 183,800 |
Additional Information:
- Store supplies still available at fiscal year-end amount to $2,050.
- Expired insurance, an administrative expense, is $1,750 for the fiscal year.
- Depreciation expense on store equipment, a selling expense, is $1,500 for the fiscal year.
- To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,700 of inventory is still available at fiscal year-end.
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