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4-5 The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY...

4-5 The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY Unadjusted Trial Balance January 31, 2017 Debit Credit Cash $ 31,200 Merchandise inventory 14,500 Store supplies 5,200 Prepaid insurance 2,800 Store equipment 42,600 Accumulated depreciation—Store equipment $ 16,000 Accounts payable 13,000 Common stock 3,800 Retained earnings 19,000 Dividends 2,100 Sales 141,750 Sales discounts 1,900 Sales returns and allowances 2,050 Cost of goods sold 38,000 Depreciation expense—Store equipment 0 Salaries expense 27,800 Insurance expense 0 Rent expense 16,000 Store supplies expense 0 Advertising expense 9,400 Totals $ 193,550 $ 193,550 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: Store supplies still available at fiscal year-end amount to $2,700. Expired insurance, an administrative expense, for the fiscal year is $1,500. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,900 of inventory is still available at fiscal year-end. rev: 10_24_2018_QC_CS-145044 Required: 1. Using the above information prepare adjusting journal entries: 2. Prepare a multiple-step income statement for fiscal year 2017. 3. Prepare a single-step income statement for fiscal year 2017.

  • 1

    Store supplies still available at fiscal year-end amount to $2,700.

  • 2

    Expired insurance, an administrative expense, for the fiscal year is $1,500.

  • 3

    Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year.

  • 4

    To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,900 of inventory is still available at fiscal year-end.

  • Prepare a multiple-step income statement for fiscal year 2017.
    NELSON COMPANY
    Income Statement
    For Year Ended January 31, 2017
    Expense
    Selling expenses
    Total selling expenses
    General and administrative expenses
    Total general and administrative expenses
    Total expenses

  • Prepare a single-step income statement for fiscal year 2017.
    NELSON COMPANY
    Income Statement
    For Year Ended January 31, 2017
    Expenses
    Total expenses

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ekkarill92 answered 9 months ago
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