FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Financial Account;
The following unadjusted
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The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.
NELSON COMPANY
Unadjusted Trial Balance
January 31, 2019
Debit
Credit
$ 11,600
15,000
5,400
2,200
42,700
Cash
Merchandise inventory
Store supplies
Prepaid insurance
Store equipment
Accumulated depreciation-Store equipment
Accounts payable
J. Nelson, Capital
J. Nelson, Withdrawals
Sales
Sales discounts
$ 18,100
13,000
17,000
2,300
130,450
2,000
2,250
38,000
Sales returns and allowances
Cost of goods sold
Depreciation expense-Store equipment
Sales salaries expenses
Office salaries expenses
15,900
15,900
Insurance expense
Rent expense-Selling space
Rent expense-Office space
Store supplies expense
Advertising expense
8,000
8,000
9,300
Totals
$178,550
$178,550
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 $2,200.
b. Expired insurance, an administrative expense, for the fiscal year is $1,800.
c. Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,300 of inventory is still available at
fiscal year-end.
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NELSON COMPANY
Work Sheet
For Year Ended January 31, 2019
Unadjusted Trial
Balance Sheet and Statement
Balance
Adjustments
Adjusted Trial Balance
of Retained Earnings
Income Statement
Account Title
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
2$
11,600
Merchandise inventory
15,000
Store supplies
5,400
Prepaid insurance
2,200
Store equipment
42,700
Accum. depreciation-Store equipment
18,100
Accounts payable
13,000
J. Nelson, Capital
17,000
J. Nelson, Withdrawals
2,300
Sales
130,450
Sales discounts
2,000
Sales returns and allowances
2,250
Cost of goods sold
38,000
Depreciation expense-Store equipment
Sales salaries expenses
15,900
Office salaries expenses
15900
Insurance expense
Rent expense-Selling space
8,000
Rent expense-Office space
8,000
Store supplies expense
Advertising expense
9,300
Totals
$
178,550
$ 178,550 $
$
0 $
2$
Net income
Totals
$4
$
0 $
$
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