The following unadjusted trial balance is prepared at fiscal year-end for Helix Company.

Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. Helix 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 $2,550.
b. Expired insurance, an administrative expense, for the fiscal year is $1,450.
c. Depreciation expense on store equipment, a selling expense, is $1,975 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,300 of inventory is still available at fiscal year-end.
2. Prepare a multiple-step income statement for fiscal year 2009.
3. Prepare a single-step income statement for fiscal year 2009.
4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2009.

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HELIX COMPANY Unadjusted Trial Balance January 31, 2009 Debit Credit 28,750 13,000 5,500 2,400 42,600 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 good sold Depreciation expense -Store equipment Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense Totals $ 19,750 14,000 19,000 20,000 2,000 115,800 1,900 2,300 38,000 27,400 15,000 9,700 $188,550 $188,550