[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
Unadjusted Trial Balance
January 31, 2017 Debit Credit Cash $ 35,750 Merchandise inventory 14,500 Store supplies 5,300 Prepaid insurance 2,800 Store equipment 42,600 Accumulated depreciation—Store equipment $ 18,250 Accounts payable 17,000 Common stock 3,000 Retained earnings 15,000 Dividends 2,000 Sales 147,150 Sales discounts 1,850 Sales returns and allowances 2,100 Cost of goods sold 38,000 Depreciation expense—Store equipment 0 Salaries expense 31,600 Insurance expense 0 Rent expense 14,000 Store supplies expense 0 Advertising expense 9,900 Totals $ 200,400 $ 200,400
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: Store supplies still available at fiscal year-end amount to $1,950. Expired insurance, an administrative expense, for the fiscal year is $1,750. Depreciation expense on store equipment, a selling expense, is $1,700 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.
1. Using the above information prepare adjusting journal entries:
2. Prepare a multiple-step income statement for fiscal year 2017.
3. Prepare a single-step income statement for fiscal year 2017.
Prepare a single-step income statement for fiscal year 2017. NELSON COMPANY Income Statement For Year Ended January 31, 2017 Expenses Total expenses 0
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[The following information applies to the questions displayed below.] The following unadjusted trial was first posted on July 6, 2020 at 2:33 am.
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