Question Details

(Solution Download) The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COM


 

 

 

 

 

 

 

The following unadjusted trial balance is prepared at fiscal

 

year-end for Nelson Company.

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NELSON COMPANY

 

Unadjusted Trial Balance

 

January 31, 2013

 

Debit

 

Credit

  Cash$1,000
  Merchandise

 

inventory

12,500
  Store supplies5,800
  Prepaid

 

insurance

2,400
  Store equipment42,900
  Accumulated

 

depreciationA????1Store equipment

$15,250
  Accounts

 

payable

10,000

 

  J. Nelson, Capital

 

32,000
  J. Nelson,

 

Withdrawals

2,200

 

  Sales

 

111,950
  Sales discounts2,000
  Sales returns and

 

allowances

2,200
  Cost of goods

 

sold

38,400
  Depreciation

 

expenseA????1Store equipment

0
  Salaries

 

expense

35,000
  Insurance

 

expense

0
  Rent expense15,000
  Store supplies

 

expense

0
  Advertising

 

expense

9,800
  Totals$169,200$169,200

 

  

 

 

 

 

 

 

 

 

Rent expense and salaries expense are equally divided between

 

selling activities and the general and administrative activities.

 

Nelson Company uses a perpetual inventory system.

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

a.Store supplies still available

 

at fiscal year-end amount to $1,750.

b.Expired insurance, an

 

administrative expense, for the fiscal year is $1,400.

c.Depreciation expense on store

 

equipment, a selling expense, is $1,525 for the fiscal year.

d.

 

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.

 

NEEDED:

 

1) Prepare a multiple-step income statement for fiscal year

 

2013.

 

2)Prepare a single-step income statement for fiscal year

 

2013.

 

3)Compute the current ratio, acid-test ratio, and gross margin

 

ratio as of January 31, 2013. (Round your answers to 2

 

decimal places.)

 

 

-------------------------------------------------------------------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July1

 

Purchased merchandise from Boden Company for $6,000 under credit

 

terms of 1/15, n/30, FOB shipping point, invoice dated July 1.

 

2

 

Sold merchandise to Creek Co. for $900 under credit terms of

 

2/10, n/60, FOB shipping point, invoice dated July 2. The

 

merchandise had cost $500.

 

3

 

Paid $125 cash for freight charges on the purchase of July

 

1.

 

8Sold merchandise that had cost

 

$1,300 for $1,700 cash.

9

 

Purchased merchandise from Leight Co. for $2,200 under credit

 

terms of 2/15, n/60, FOB destination, invoice dated July 9.

 

11

 

Received a $200 credit memorandum from Leight Co. for the return

 

of part of the merchandise purchased on July 9.

 

12

 

Received the balance due from Creek Co. for the invoice dated

 

July 2, net of the discount.

 

16

 

Paid the balance due to Boden Company within the discount

 

period.

 

19

 

Sold merchandise that cost $800 to Art Co. for $1,200 under

 

credit terms of 2/15, n/60, FOB shipping point, invoice dated July

 

19.

 

21

 

Issued a $200 credit memorandum to Art Co. for an allowance on

 

goods sold on July 19.

 

24

 

Paid Leight Co. the balance due after deducting the

 

discount.

 

30

 

Received the balance due from Art Co. for the invoice dated July

 

19, net of discount.

 

31

 

Sold merchandise that cost $4,800 to Creek Co. for $7,000 under

 

credit terms of 2/10, n/60, FOB shipping point, invoice dated July

 

31.

 

 

  

 

Prepare journal entries to record the above merchandising

 

transactions of Blink Company, which applies the perpetual

 

inventory system.

 

 

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Dec 08, 2020

PRICE: $15

Solution~000652147653921.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Dec 08, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now