GL0403 (Algo) - Based on Problem 4-5A LO A1, P3, P4

The fiscal year-end unadjusted trial balance for Allen Company is found on the trial balance tab. Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Allen Company uses a perpetual inventory system. Descriptions of items that require adjusting entries on January 31, 2019, follow.

a. Store supplies still available at fiscal year-end amount to $2,550.

b. Expired insurance, an administrative expense, for the fiscal year is $1,720.

c. Depreciation expense on store equipment, a selling expense, is $6,500 for the fiscal year.

d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,720 of inventory is still available at fiscal year-end.

\begin{tabular}{|l|c|c|c|c|} \hline Unadjusted & Cash \\ General Led \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 16,150 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Store supplies } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 7,650 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 65,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 13,200 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Retained earnings } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 31,800 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Sales } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 128,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Sales returns and allowances } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 4,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Salaries expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 33,000 \\ \hline \end{tabular} Advertising expense \begin{tabular}{|c|c|c|c|c|} \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 10,650 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Advertising expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 10,650 \\ \hline \end{tabular} General Journal Trial Balance > Unadjusted Dates: January \begin{tabular}{|l|r|} \hline Current ratio & 2.31 \\ \hline Acid-test ratio & \\ \hline Gross margin ratio & \\ \hline \end{tabular} Balance Sheet Ratios \begin{tabular}{|l|c|c|c|c|} \hline Unadjusted & Cash \\ General Led \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 16,150 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Store supplies } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 7,650 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 65,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 13,200 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Retained earnings } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 31,800 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Sales } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 128,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Sales returns and allowances } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 4,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Salaries expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 33,000 \\ \hline \end{tabular} Advertising expense \begin{tabular}{|c|c|c|c|c|} \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 10,650 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Advertising expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 31 & & & 10,650 \\ \hline \end{tabular} General Journal Trial Balance > Unadjusted Dates: January \begin{tabular}{|l|r|} \hline Current ratio & 2.31 \\ \hline Acid-test ratio & \\ \hline Gross margin ratio & \\ \hline \end{tabular} Balance Sheet Ratios