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The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY Unadjusted Trial Balance January 31, 2017 Debit Credit Cash $
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.
NELSON COMPANY Unadjusted Trial Balance January 31, 2017 | |||||
Debit | Credit | ||||
Cash | $ | 46,550 | |||
Merchandise inventory | 13,500 | ||||
Store supplies | 5,600 | ||||
Prepaid insurance | 2,300 | ||||
Store equipment | 42,600 | ||||
Accumulated depreciationStore equipment | $ | 18,450 | |||
Accounts payable | 18,000 | ||||
Common stock | 3,600 | ||||
Retained earnings | 18,000 | ||||
Dividends | 2,100 | ||||
Sales | 147,950 | ||||
Sales discounts | 1,900 | ||||
Sales returns and allowances | 2,150 | ||||
Cost of goods sold | 38,000 | ||||
Depreciation expenseStore equipment | 0 | ||||
Salaries expense | 26,600 | ||||
Insurance expense | 0 | ||||
Rent expense | 15,000 | ||||
Store supplies expense | 0 | ||||
Advertising expense | 9,700 | ||||
Totals | $ | 206,000 | $ | 206,000 | |
Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system.
Additional Information:
- Store supplies still available at fiscal year-end amount to $2,350.
- Expired insurance, an administrative expense, for the fiscal year is $1,750.
- Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscal year.
- To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,200 of inventory is still available at fiscal year-end.
rev: 10_24_2018_QC_CS-145044
Required:
1. Using the above information prepare adjusting journal entries: 2. Prepare a multiple-step income statement for fiscal year 2017. 3. Prepare a single-step income statement for fiscal year 2017.
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