Question

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

NELSON COMPANY Unadjusted Trial Balance January 31, 2019
	Debit			Credit
Cash	$	17,550
Merchandise inventory		12,500
Store supplies		5,400
Prepaid insurance		2,500
Store equipment		42,700
Accumulated depreciation—Store equipment				$	16,200
Accounts payable					17,000
J. Nelson, Capital					16,000
J. Nelson, Withdrawals		2,000
Sales					130,300
Sales discounts		1,850
Sales returns and allowances		2,300
Cost of goods sold		38,000
Depreciation expense—Store equipment		0
Sales salaries expenses		15,250
Office salaries expenses		15,250
Insurance expense		0
Rent expense—Selling space		7,500
Rent expense—Office space		7,500
Store supplies expense		0
Advertising expense		9,200
Totals	$	179,500		$	179,500

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:

1. Store supplies still available at fiscal year-end amount to $2,100.
2. Expired insurance, an administrative expense, for the fiscal year is $1,650.
3. Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year.
4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,100 of inventory is still available at fiscal year-end.

Required:

Prepare and complete the entire 10-column work sheet for Nelson Company.

Answer 1

Following is the 10 Column Worksheet:

Hope it helps.