Problem 5-6AD Preparing a work sheet for a merchandiser LO P3 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 $ 17,950 Merchandise inventory 13,000 Store supplies 5,700 Prepaid insurance 2,700 Store equipment 43,000 Accumulated depreciation - Store equipment $ 18,950 Accounts payable 15,000 J. Nelson, Capital 15,000 J. Nelson, Withdrawals 2,150 Sales 130, 850 Sales discounts 2,050 Sales returns and allowances 2,150 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expenses 13,400 Office salaries expenses 13,400 Insurance expense 0 Rent expense-Selling space 8,500 Rent expense-Office space 8,500 Store supplies expense 0 Advertising expense 9,300 Totals $179, 800 $179,800 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: a. Store supplies still available at fiscal year-end amount to $2,350. b. Expired insurance, an administrative expense, for the fiscal year is $1,750. c. Depreciation expense on store equipment, a selling expense, is $1,575 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,600 of inventory is still available at fiscal vear-end. Required: Prepare and complete the entire 10-column work sheet for Nelson Company NELSON COMPANY Work Sheet For Year Ended January 31, 2019 Balance Sheet and Statement of Retained Earnings Adjustments Dr. Cr. Adjusted Trial Balance Dr. Cr. Income Statement Dr. Cr. Dr. Cr. 5 Account Title Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accum depreciation Store equipment Accounts payable J. Nelson. Capital J. Nelson, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense Store equipment Sales salaries expenses Office salaries expenses Insurance expense Rent expense-Selling space Rent expense-Office space Store supplies expense Advertising expense Totals Unadjusted Trial Balance Dr. Cr. 17.950 13 000 5.700 2.700 43.000 18.950 15.000 15.000 2.150 130.850 2050 2 150 38.000 0 13.400 13400 0 8.500 8.500 0 9.300 179.800 $ 179.800 $