The following unadjusted trial balance is prepared at fiscal year-end for Foster Products Com pany FOSTER PRODUCTS COMPANY Unadjusted Trial Balance October 31, 2017 Credit Debit $ 7,400 24,000 9,700 6,600 81,800 2 Cash 3 Merchandise inventory 4 Store supplies 5 Prepaid insurance 6 Store equipment 7Accumulated depreciation-Store equipment 8 Accounts payable 9 Common stock 10 Retained earnings 11 Dividends 12 Sales 13 Sales discounts 14 Sales returns and allowances 15 Cost of goods sold 16 Depreciation expense-Store equipment 17 Salaries expense 18 Insurance expense 101 Rent expense 20 Store supplies expense 21 Advertising expense 22 Totals 32.000 18,000 3,000 40,000 2,000 227,100 1,000 5,000 75,800 0 63,000 26,000 17,800 320,100 $320,100 Rent expense and salaries expense are equally divided between selling activities and general and adminis- trative activities. Foster Products Company uses a perpetual inventory system. Required 1. Prepare adjusting journal entries to reflect each of the following a. Store supplies still available at fiscal year-end amount to $3,700. b. Expired insurance, an administrative expense, for the fiscal year is $2.800. c. Depreciation expense on store equipment, a selling expense, is $3,000 for the fiscal year. d. Toestimate shrinkage, a physical count of ending merchandise inventory is taken. It shows$21 of inventory is still available at fiscal year-end. 2. Prepare a multiple-step income statement for fiscal year 2017 that begins with gross sales and inclu separate categories for net sales, cost of goods sold, selling expenses, and general expenses. and administrative 3. Prepare a single-step income statement for fiscal year 2017 Compute the current ratio, acid-test ratio, and gross margin ratio as of October 31, 2017. (Round ratios to two decimals.) 4