! Required information [The following information applies to the questions displayed below.] The following unadjusted trial...
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! Required information [The following information applies to the questions displayed below.] 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. NELSON COMPANY Unadjusted Trial Balance January 31 Cash Debit $ 19,900 Credit Merchandise inventory 15,000 Store supplies 5,900 Prepaid insurance 2,200 Store equipment 42,600 Accumulated depreciation-Store equipment $ 18,150 Accounts payable 16,000 Common stock 4,000 Retained earnings 26,000 Dividends 2,300 Sales 114,500 Sales discounts 1,950 Sales returns and allowances 2,100 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expense 13,650 Office salaries expense 13,650 Common stock Retained earnings Dividends Sales 4,000 26,000 2,300 114,500 Sales discounts 1,950 Sales returns and allowances 2,100 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expense 13,650 Office salaries expense 13,650 Insurance expense 0 Rent expense-Selling space 6,000 Rent expense-Office space Store supplies expense Advertising expense Totals 6,000 0 9,400 $ 178,650 $ 178,650 Additional Information: a. Store supplies still available at fiscal year-end amount to $1,500. b. Expired insurance, an administrative expense, is $1,750 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,000 of inventory is still available at fiscal year-end. Required: Required: 1. Using the above information, prepare adjusting journal entries. 2. Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. 3. Prepare a single-step income statement for the year ended January 31. Journal entry worksheet 1 2 3 4 Store supplies still available at fiscal year-end amount to $1,500. Note: Enter debits before credits. Transaction a. General Journal Debit Credit View general journal Clear entry Record entry > Journal entry worksheet 1 2 3 4 Expired insurance, an administrative expense, is $1,750 for the fiscal year. Note: Enter debits before credits. Transaction b. General Journal Debit Credit View general journal Clear entry Record entry Journal entry worksheet < 1 2 3 4 Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year. Note: Enter debits before credits. Transaction C. General Journal Debit Credit View general journal Record entry Clear entry > Journal entry worksheet < 1 2 3 4 To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,000 of inventory is still available at fiscal year-end. Note: Enter debits before credits. Transaction d. General Journal Debit Credit View general journal Record entry Clear entry > Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. NELSON COMPANY Income Statement For Year Ended January 31 Expenses Selling expenses 0 0 0 Total selling expenses 0 General and administrative expenses Total general and administrative expenses Total expenses 0 0 < Required 1 Required 3 > Required 1 Required 2 Required 3 Prepare a single-step income statement for the year ended January 31. NELSON COMPANY Income Statement For Year Ended January 31 Expenses Total expenses 0 < Required 2 Required 3 No 1 Date Aug 31 Sales Income summary General Journal Debit 263,340 Credit 263,340 2 Aug 31 Income summary Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-Office space Office supplies expense Sales discounts Sales returns and allowances 3 Aug 31 Income summary Retained Earnings 4 Aug 31 Retained Earnings Dividends 101,850 101,850 36,078 12,377 3,160 22,384 32,918 3,160 1,053 4,029 17,380 36,078 X 8,000 8,000 [The following information applies to the questions displayed below.j Valley Company's adjusted account balances from its general ledger on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Adjusted Account Balances Merchandise inventory (ending) Common stock Other (non-inventory) assets Total liabilities Retained earnings Debit $ 38,500 154,000 Credit $ 44,468 75,256 51,825 Dividends Sales 8,000 263,340 Sales discounts 4,029 Sales returns and allowances 17,380 Cost of goods sold 101,850 Sales salaries expense 36,078 Rent expense-Selling space 12,377 Store supplies expense 3,160 Advertising expense 22,384 Office salaries expense 32,918 Rent expense-Office space 3,160 Office supplies expense Totals 1,053 $ 434,889 $ 434,889 Beginning merchandise inventory was $31,070. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $ 113,190 2,377 5,433 3,900 ! Required information [The following information applies to the questions displayed below.] 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. NELSON COMPANY Unadjusted Trial Balance January 31 Cash Debit $ 19,900 Credit Merchandise inventory 15,000 Store supplies 5,900 Prepaid insurance 2,200 Store equipment 42,600 Accumulated depreciation-Store equipment $ 18,150 Accounts payable 16,000 Common stock 4,000 Retained earnings 26,000 Dividends 2,300 Sales 114,500 Sales discounts 1,950 Sales returns and allowances 2,100 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expense 13,650 Office salaries expense 13,650 Common stock Retained earnings Dividends Sales 4,000 26,000 2,300 114,500 Sales discounts 1,950 Sales returns and allowances 2,100 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expense 13,650 Office salaries expense 13,650 Insurance expense 0 Rent expense-Selling space 6,000 Rent expense-Office space Store supplies expense Advertising expense Totals 6,000 0 9,400 $ 178,650 $ 178,650 Additional Information: a. Store supplies still available at fiscal year-end amount to $1,500. b. Expired insurance, an administrative expense, is $1,750 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,000 of inventory is still available at fiscal year-end. Required: Required: 1. Using the above information, prepare adjusting journal entries. 2. Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. 3. Prepare a single-step income statement for the year ended January 31. Journal entry worksheet 1 2 3 4 Store supplies still available at fiscal year-end amount to $1,500. Note: Enter debits before credits. Transaction a. General Journal Debit Credit View general journal Clear entry Record entry > Journal entry worksheet 1 2 3 4 Expired insurance, an administrative expense, is $1,750 for the fiscal year. Note: Enter debits before credits. Transaction b. General Journal Debit Credit View general journal Clear entry Record entry Journal entry worksheet < 1 2 3 4 Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year. Note: Enter debits before credits. Transaction C. General Journal Debit Credit View general journal Record entry Clear entry > Journal entry worksheet < 1 2 3 4 To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,000 of inventory is still available at fiscal year-end. Note: Enter debits before credits. Transaction d. General Journal Debit Credit View general journal Record entry Clear entry > Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. NELSON COMPANY Income Statement For Year Ended January 31 Expenses Selling expenses 0 0 0 Total selling expenses 0 General and administrative expenses Total general and administrative expenses Total expenses 0 0 < Required 1 Required 3 > Required 1 Required 2 Required 3 Prepare a single-step income statement for the year ended January 31. NELSON COMPANY Income Statement For Year Ended January 31 Expenses Total expenses 0 < Required 2 Required 3 No 1 Date Aug 31 Sales Income summary General Journal Debit 263,340 Credit 263,340 2 Aug 31 Income summary Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-Office space Office supplies expense Sales discounts Sales returns and allowances 3 Aug 31 Income summary Retained Earnings 4 Aug 31 Retained Earnings Dividends 101,850 101,850 36,078 12,377 3,160 22,384 32,918 3,160 1,053 4,029 17,380 36,078 X 8,000 8,000 [The following information applies to the questions displayed below.j Valley Company's adjusted account balances from its general ledger on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Adjusted Account Balances Merchandise inventory (ending) Common stock Other (non-inventory) assets Total liabilities Retained earnings Debit $ 38,500 154,000 Credit $ 44,468 75,256 51,825 Dividends Sales 8,000 263,340 Sales discounts 4,029 Sales returns and allowances 17,380 Cost of goods sold 101,850 Sales salaries expense 36,078 Rent expense-Selling space 12,377 Store supplies expense 3,160 Advertising expense 22,384 Office salaries expense 32,918 Rent expense-Office space 3,160 Office supplies expense Totals 1,053 $ 434,889 $ 434,889 Beginning merchandise inventory was $31,070. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $ 113,190 2,377 5,433 3,900
Expert Answer:
Related Book For
Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett
Posted Date:
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