In: Accounting
PLEASE MAKE SURE ALL NUMBERS MATCH UP AND ARE CORRECTLY CALCULATED
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.
NELSON COMPANY Unadjusted Trial Balance January 31, 2018 |
|||||
Debit | Credit | ||||
Cash | $ | 1,000 | |||
Merchandise inventory | 12,500 | ||||
Store supplies | 5,800 | ||||
Prepaid insurance | 2,400 | ||||
Store equipment | 42,900 | ||||
Accumulated depreciation—Store equipment | $ | 15,250 | |||
Accounts payable | 10,000 | ||||
Common stock | 5,000 | ||||
Retained earnings | 27,000 | ||||
Dividends | 2,200 | ||||
Sales | 111,950 | ||||
Sales discounts | 2,000 | ||||
Sales returns and allowances | 2,200 | ||||
Cost of goods sold | 38,400 | ||||
Depreciation expense—Store equipment | 0 | ||||
Salaries expense | 35,000 | ||||
Insurance expense | 0 | ||||
Rent expense | 15,000 | ||||
Store supplies expense | 0 | ||||
Advertising expense | 9,800 | ||||
Totals | $ | 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:
Required:
1. Using the above information prepare adjusting journal
entries:
2. Prepare a multiple-step income statement for
fiscal year 2018.
3. Prepare a single-step income statement for
fiscal year 2018.