The following unadjusted trial balance is prepared at fiscal year - end for Nelson Company. Nelson Company
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Question:
The following unadjusted trial balance is prepared at fiscal yearend for Nelson Company. Nelson Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation ExpenseStore Equipment, Sales Salaries Expense, Rent ExpenseSelling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative.
NELSON COMPANY
Unadjusted Trial Balance
January
Debit Credit
Cash $
Merchandise inventory
Store supplies
Prepaid insurance
Store equipment
Accumulated depreciationStore equipment $
Accounts payable
Common stock
Retained earnings
Dividends
Sales
Sales discounts
Sales returns and allowances
Cost of goods sold
Depreciation expenseStore equipment
Sales salaries expense
Office salaries expense
Insurance expense
Rent expenseSelling space
Rent expenseOffice space
Store supplies expense
Advertising expense
Totals $ $
Additional Information:
Store supplies still available at fiscal yearend amount to $
Expired insurance, an administrative expense, is $ for the fiscal year.
Depreciation expense on store equipment, a selling expense, is $ for the fiscal year.
To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $ of inventory is still available at fiscal yearend.
Compute the current ratio, acidtest ratio, and gross margin ratio as of January
Note: Round your answers to decimal places.
Related Book For
Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett
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