Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following unadjusted trlal balance is prepared at fiscal year-end for Nelson Company. Nelson Company uses a perpetual Inventory system. It categorizes the following accounts

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The following unadjusted trlal balance is prepared at fiscal year-end for Nelson Company. Nelson Company uses a perpetual Inventory system. It categorizes the following accounts as seling expenses: Depreciation Expense-Store Equipment, Sales Salanes Expense, Rent Expense-Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. Additional information a. Store supplies still avaliable at fscal year-end amount to $1,750 b. Explred insurance, an administrative expense. is $1,400 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscai year. d. Th estimate shrinkanp a nhwsical roiint of endinn merrhandice inventorv is taken it shnwes $10900 of inventon is Using the above information, prepare adjusting journal entries. 1 Store supplies still available at fiscal year-end amount to $1,750. 2 Expired insurance, an administrative expense, is $1,400 for the fiscal year. 3 Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscal year. 0. Store supplies still avallable at fiscal year-end amount to $1,750. b. Explred insurance, an administrative expense, is $1,400 for the fiscal year. 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 avallable at fiscal year-end. 4. Compute the current ratio, acid-test ratio, ond gross margin ratio as of January 31 Note: Round your answers to 2 decimal places. a. Store supplles still avallable at fiscal year-end amount to $1,750. b. Expired insurance, an administrative expense, is $1,400 for the fiscal year. 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 avallable at fiscal year-end

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, George Foster, Srikant M. Datar

8th Edition

0131810669, 978-0131810662

More Books

Students also viewed these Accounting questions