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The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company SET SON COMPANY Unadjusted Trial Balance January 31, 2017 Credit $ Debit

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The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company SET SON COMPANY Unadjusted Trial Balance January 31, 2017 Credit $ Debit 1.000 12,500 5,800 2.400 42,900 $ 15,250 10,000 5,000 27.000 2,200 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-store equipment Accounts payable Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense Totals 111.950 2,000 2,200 38,400 35,000 15,000 9.800 $ 169,200 $169,200 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: a. Store supplies still available at fiscal year-end amount to $1,750. b. Expired insurance, an administrative expense, for the fiscal year is $1,400. c. Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,900 of inventory is still available at Welsh Balance sheet and of Retained Earnings Adjustments Dr. Cr. Adjusted Trial Balance Dr. cr. cr. I Income Statement Dr. cr. L Dr. Cr. $ 1.000 12.500 Merchandise inventory 5.800 2.400 1.750 1,400 42.900 Store supplies Prepaid insurance Store equipment Accum depreciation Store equipment Accounts payable Common stock T 15.250 10.000 5000 27.000 Retained earnings Dividends 2 200 111.950 111,950 2.000 Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense Store equipment 2.000 2.200 38 400 40,000| 1,525 1. 5 35 000 Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense 15,000 9,800 $ 169 200 $ 169 200 $ 0 $ 0 $ 0 $ 15,575 44 200 0 Net income Totals 111.950 107.750 219.700 5 $ 4.200 $ 0

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