Question: the following unadjusted trial balance is prepared at fiscal yearend...
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.
Unadjusted Trial Balance
January 31, 2017
|Accumulated depreciation—Store equipment||$||18,000|
|Sales returns and allowances||2,200|
|Cost of goods sold||38,000|
|Depreciation expense—Store equipment||0|
|Store supplies expense||0|
Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system.
- Store supplies still available at fiscal year-end amount to $1,800.
- Expired insurance, an administrative expense, for the fiscal year is $1,500.
- Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year.
- To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,800 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.