80.2K

Verified Solution

Link Copied!

help. what am i missing? what am i wrong?

5 Part 1 of 2 10 points Required information. [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 uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense-Store Equipment, Sales Salaries Expense, Rent Expense-Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. NELSON COMPANY Unadjusted Trial Balance January 31 Debit $21,750 Credit Cash Merchandise inventory. 15,000 Store supplies 5,200 Prepaid insurance 2,700 Store equipment 42,900 Accumulated depreciation-store equipment Accounts payable $ 19,850 15,000 33,000 J. Nelson, Capital J. Nelson, Withdrawals 2,250 Sales 116,400 Sales discounts 2,050 Sales returns and allowances 2,100 cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expense 13,900 office salaries expense 13,900 Insurance expense Rent expense-Selling space 0 7,500 7,500 0 Rent expense-Office space Store supplies expense Advertising expense Totals 9,500 $ 104,250 $ 104,250 Additional Information: a. Store supplies still available at fiscal year-end amount to $1,700. b. Expired insurance, an administrative expense, is $1,650 for the fiscal year. 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 $10,200 of inventory is still available at fiscal year-end. W Required: 1. Using the above information, prepare adjusting journal entries. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the above information, prepare adjusting journal entries. No Transaction General Journal Debit Credit Store supplies expense Store supplies of 7 1 D of 2 Required information Required 1 Required 2 Required 3 Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales and includes separat categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. NELSON COMPANY Income Statement For Year Ended January 31 Sales $ 116,400 Less: Sales discounts $ Less: Sales returns and allowances 4,150 Net sales 112,250 Cost of goods sold 38,000 Gross profit 74,250 Expenses Selling expenses Advertising expense Depreciation expense-Store equipment Sales salaries expense Rent expense Selling space Total selling expenses General and administrative expenses Office salaries expense Insurance expense Total general and administrative expenses Total expenses Net income 4000 O 33 2,050 2,100 9,500 13,900 7,500 $ 13,900 $ Required 1 Required 2 Required 3 Prepare a single-step income statement for the year ended January 31. NELSON COMPANY Income Statement. For Year Ended January 31 Net sales Expenses 0 Required 3 > Selling expenses General and administrative expenses Total expenses Net income

Answer & Explanation Solved by verified expert

See Answer