Rent expense and salaries expense are equally divided between selling activities and general and administrative activities....

    

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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 $2,550. b. Expired insurance, an administrative expense, for the fiscal year is $1,450. c. Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,400 of inventory is still available at fiscal year-end. Required: Prepare and complete the entire 10-column work sheet for Nelson Company. Unadjusted Trial NELSON COMPANY Work Sheet For Year Ended January 31, 2019 Income Statement Balance Adjustments Adjusted Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cash Merchandise inventory $ 14,350 15,000 5,700 Store supplies Dronoid insurance 2900 Balance Sheet and Statement of Retained Earnings Cr. Dr. Cr. Merchandise inventory 15,000 Store supplies 5,700 Prepaid insurance 2,800 Store equipment 42,700 Accum. depreciation-Store equipment 18,050 Accounts payable 12,000 J. Nelson, Capital 17,000 J. Nelson, Withdrawals Sales 2,250 130,250 Sales discounts 2,000 Sales returns and allowances 2,000 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expenses 13,600 Office salaries expenses 13600 Insurance expense 0 Rent expense-Selling space 8,000 8,000 0 Rent expense-Office space Store supplies expense Advertising expense Totals Net income Totals 9,300 $ 177,300 $177,300 NELSON COMPANY Unadjusted Trial Balance January 31, 2019 Debit Credit Cash $ 14,350 Merchandise inventory 15,000 Store supplies 5,700 Prepaid insurance 2,800 Store equipment 42,700 Accumulated depreciation-Store equipment $ 18,050 Accounts payable 12,000 3. Nelson, Capital 17,000 J. Nelson, Withdrawals 2,250 Sales 130,250 Sales discounts 2,000 Sales returns and allowances 2,000 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expenses 13,600 Office salaries expenses 13,600 Insurance expense 0 Rent expense-Selling space 8,000 Rent expense-Office space 8,000 Store supplies expense Advertising expense Totals 0 9,300 $177,300 $177,300 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 $2,550. b. Expired insurance, an administrative expense, for the fiscal year is $1,450. c. Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,400 of inventory is still available at fiscal year-end. Required: Prepare and complete the entire 10-column work sheet for Nelson Company. Unadjusted Trial NELSON COMPANY Work Sheet For Year Ended January 31, 2019 Income Statement Balance Adjustments Adjusted Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cash Merchandise inventory $ 14,350 15,000 5,700 Store supplies Dronoid insurance 2900 Balance Sheet and Statement of Retained Earnings Cr. Dr. Cr. Merchandise inventory 15,000 Store supplies 5,700 Prepaid insurance 2,800 Store equipment 42,700 Accum. depreciation-Store equipment 18,050 Accounts payable 12,000 J. Nelson, Capital 17,000 J. Nelson, Withdrawals Sales 2,250 130,250 Sales discounts 2,000 Sales returns and allowances 2,000 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expenses 13,600 Office salaries expenses 13600 Insurance expense 0 Rent expense-Selling space 8,000 8,000 0 Rent expense-Office space Store supplies expense Advertising expense Totals Net income Totals 9,300 $ 177,300 $177,300 NELSON COMPANY Unadjusted Trial Balance January 31, 2019 Debit Credit Cash $ 14,350 Merchandise inventory 15,000 Store supplies 5,700 Prepaid insurance 2,800 Store equipment 42,700 Accumulated depreciation-Store equipment $ 18,050 Accounts payable 12,000 3. Nelson, Capital 17,000 J. Nelson, Withdrawals 2,250 Sales 130,250 Sales discounts 2,000 Sales returns and allowances 2,000 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expenses 13,600 Office salaries expenses 13,600 Insurance expense 0 Rent expense-Selling space 8,000 Rent expense-Office space 8,000 Store supplies expense Advertising expense Totals 0 9,300 $177,300 $177,300