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The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.

The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter14: Adjustments And The Work Sheet For A Merchandising Business
Section: Chapter Questions
Problem 9SPB: COMPLETION OF A WORK SHEET SHOWING A NET INCOME A trial balance for the Bosket Corner, a business...
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Financial Account; 

The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.

 

Photos - Screenshot (264).png A See all photos + Add to * Edit & Create v IA Share 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.
Transcribed Image Text:Photos - Screenshot (264).png A See all photos + Add to * Edit & Create v IA Share 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 $10,300 of inventory is still available at fiscal year-end.
Photos - Screenshot (265).png A See all photos + Add to * Edit & Create v 2 Share NELSON COMPANY Work Sheet For Year Ended January 31, 2019 Unadjusted Trial Balance Sheet and Statement Balance Adjustments Adjusted Trial Balance of Retained Earnings Income Statement Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash 2$ 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 $ $
Transcribed Image Text:Photos - Screenshot (265).png A See all photos + Add to * Edit & Create v 2 Share 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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