GL04-03 - Based on Problem 4-5A Nelson Company LO C2, P3 The fiscal year end unadjusted trial balance for Nelson Company is found on the trial balance tab. Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system. Descriptions of items that require adjusting entries on January 31, 2017, follow. a. Store supplies still available at fiscal year-end amount to $1.750. b. Expired insurance, an administrative expense, for the fiscal year is $1.400. c. Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscal year. d. 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 Requirement General Journal General Ledger Trial Balance Multiple Step Single Step IS Balance Sheet Ratios Compute the following ratios as of January 31, 2017. Round each ratio to 2 decimal places. Dates: Jan 31 to Jan 31 Current rabo Acid-test ratio Gross margin ratio Adjusted Dates: Jan 31 to: Jan 31 Nelson Company Trial Balance January 31, 2017 Account Title Credit $ Debit 1,000 10,900 1.750 42.900 16.775 10.000 5,000 27.000 2,200 -Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation - Store equip Accounts payable Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense - Store equip. salaries expense Insurance expense Rent expense Store supplies expense Advertising expense Total 111.950 2,000 2,200 40.000 1.525 35,000 1.400 15.000 4,050 0,800 170,725 $ $ 170.725