CashMerchandise inventory.Store suppliesPrepaid insuranceStore equipmentAccumulated depreciation-Store equipmentAccounts payableCommon stockRetained earningsDividendsSalesSales discountsSales returns and allowancesCost of goods soldDepreciation expense-Store equipmentSales salaries expenseoffice salaries expenseNELSON COMPANYUnadjusted Trial BalanceJanuary 31Insurance expenseRent expense-Selling spaceRent expense-office spaceStore supplies expenseAdvertising expenseTotalsAdditional Information:Problem 4-5A (Algo) Part 4Current ratioAcid-test ratioGross margin ratioDebit$ 19,80014,5005,3002,60042,5002,25012,0002,20038,000014,60014,60009,0009,00009,200$ 185,5501Credit$ 19,15015,000a. Store supplies still available at fiscal year-end amount to $3,000.b. Expired insurance, an administrative expense, is $1,450 for the fiscal year.4,00031,000c. 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 $10,500 of inventory isstill available at fiscal year-end.116,400$ 185,5504. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31.Note: Round your answers to 2 decimal places.

Name: CashMerchandise inventory.Store suppliesPrepaid insuranceStore equipm
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Description: CashMerchandise inventory.Store suppliesPrepaid insuranceStore equipmentAccumulated depreciation-Store equipmentAccounts payableCommon stockRetained earningsDividendsSalesSales discountsSales returns and allowancesCost of goods soldDepreciation expe

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Business

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Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable Common stock Retained earnings Dividends NELSON COMPANY Unadjusted Trial Balance January 31 Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Sales salaries expense office salaries expense Insurance expense Rent expense-Selling space Rent expense-Office space Store supplies expense Advertising expense Totals Additional Information: Debit $ 19,800 14,500 5,300 2,600 42,500 2,250 2,000 2,200 38,000 0 14,600 14,600 0 9,000 9,000 0 9,200 $ 185,550 Credit $ 19,150 15,000 4,000 31,000 116,400 $ 185,550 a. Store supplies still available at fiscal year-end amount to $3,000. b. Expired insurance, an administrative expense, is $1,450 for the fiscal year. 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 $10,500 of inventory is still available at fiscal year-end.

Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable Common stock Retained earnings Dividends NELSON COMPANY Unadjusted Trial Balance January 31 Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Sales salaries expense office salaries expense Insurance expense Rent expense-Selling space Rent expense-Office space Store supplies expense Advertising expense Totals Additional Information: Debit $ 19,800 14,500 5,300 2,600 42,500 2,250 2,000 2,200 38,000 0 14,600 14,600 0 9,000 9,000 0 9,200 $ 185,550 Credit $ 19,150 15,000 4,000 31,000 116,400 $ 185,550 a. Store supplies still available at fiscal year-end amount to $3,000. b. Expired insurance, an administrative expense, is $1,450 for the fiscal year. 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 $10,500 of inventory is still available at fiscal year-end.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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