FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following unadjusted
Additional Information:
Store supplies still available at fiscal year-end amount to $1,750.
Expired insurance, an administrative expense, is $1,400 for the fiscal year.
Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscal year.
To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,900 of inventory is still available at fiscal year-end.
Required:
1. Using the above information, prepare
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.
4. Compute the
Transcribed Image Text:NELSON COMPANY
Unadjusted Trial Balance
January 31
Debit
Credit
Cash
$ 1,000
Merchandise inventory
12,500
Store supplies
5,800
Prepaid insurance
2,400
Store equipment
42,900
Accumulated depreciation-Store equipment
$ 15,250
Accounts payable
10,000
Common stock
5,000
Retained earnings
27,000
Dividends
2,200
Sales
111,950
Sales discounts
2,000
Sales returns and allowances
2,200
Cost of goods sold
38,400
Depreciation expense-Store equipment
Sales salaries expense
17,500
Office salaries expense
17,500
Insurance expense
Rent expense-Selling space
7,500
Rent expense-Office space
7,500
Store supplies expense
Advertising expense
9,800
Totals
$ 169,200 $ 169,200
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