Problem $4-5$A $($Static$)$ Preparing adjusting entries and income statements; computing gross margin, acidtest, and current ratios LO A$1,$ P$3,$ P$4$

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The following unadjusted trial balance is prepared at fiscal year$-$end for Nelson Company. Nelson Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense$-$Store Equipment, Sales Salaries Expense, Rent Expense$-$Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative.

$\backslash$table$[[\backslash$table$[[$NELSON COMPANY$],[$Unadjusted Trial Balance$],[$January $31]],,],[$Cash$,$Debit,Credit$],[$Merchandise inventory,$$1,000,],[$Store supplies,$12,500,],[$Prepaid insurance,$5,800,],[$Store equipment,$2,400,],[$Accumulated depreciation$-$Store equinment,$42,900,],[$Accounts payable,,$$15,250$