- Ine Following Unadjusted Trial Balance Is Prepared At Fiscal Year End For Nelson Company Nelson Company Uses A Perpetua 1 (49.63 KiB) Viewed 18 times
- Ine Following Unadjusted Trial Balance Is Prepared At Fiscal Year End For Nelson Company Nelson Company Uses A Perpetua 2 (10.81 KiB) Viewed 18 times
Ine following unadjusted trial balance is prepared at fiscal year-end for Nelson
Company. Nelson
Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense-Store Equipment, Sales Salaries Expense, Rent Expense-Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. Cash Merchandise inventory Store supplies Prepaid insurance Store equipment NELSON
COMPANY Unadjusted Trial Balance January 31 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 Sales salaries expense Office salaries expense Insurance expense Rent expense-Selling space Rent expense-Office space Stofe supplies expense Advertising expense Totals Debit $ 16,250 12,000 5,500 2,500 42,700 2,100 1,950 2,250 38,000 0 13,550 13,550 0 8,500 8,500 0 9,100 $ 176,450 Credit $ 17,100 14,000 3,000 26,000 116,350 $ 176,450 Additional Information: a. Store supplies still available at fiscal year-end amount to $2,900. b. Expired insurance, an administrative expense, is $1,700 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year. d. 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.
4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. (Round your answers to 2 decimal places.) Current ratio : Acid-test ratio Gross margin ratio 1 1 :1