C t b ezto.mheducation.com/hm.tpx The folowing unadjusted trial balance is prepa

Question

C t b ezto.mheducation.com/hm.tpx The folowing unadjusted trial balance is prepared at fiscal year-end for Nelson Company Unadjusted Trial Balance January 31, 2015 $ 16,700 14,000 5,500 2,500 Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreclation-Store equlpment Accounts payable Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense 16,600 13,000 16,000 8,000 equlpment 42,600 2,100 115,000 1800 15.000 1,800 2,100 38,000 0 25,300 0 18,000 0 10,000 Totals $ 178,600 $178,600 Rent expense and salaries expense are equaly dvided between selling ectivities and the general and administrative activities. Nelson Company uses a perpetual inventory system. Additional Information: a. Store supplies still available at fiscal year-end amount to $1,750. b. Expired Insurance, an administrative expense, for the fiscal year is $1,600 c. Depreciation expense on store equilpment, o selling expense, is $1,575 for the fiscal year d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It s d insurance, an administrative expense, for the fiscal year is $1,600. hows $10,300 of inventory is still avaiable at fiscal year-end.

Explanation / Answer

Adjusting Journal Entries:

Date

Accounts Titles and Explanations

Debit

Credit

a

Store Supplies Expense =5500-1750 =

$                    3,750

Store Supplies

$                    3,750

(Being store supplies consumsed)

b.

Insurance Expense

$                    1,600

Prepaid Insurance

$                    1,600

(Being prepaid insurance expired)

c.

Depreciation expense- Store Equipment

$                    1,575

Accumulated Depreciation- Store Equipment

$                    1,575

(Being depreciation expense recorded)

d.

Cost of Goods sold

$                    3,700

Merchandise Inventory (14000-10300)

$                    3,700

(Being shrinkage of inventory adjusted)

Adjusting Journal Entries:

Date

Accounts Titles and Explanations

Debit

Credit

a

Store Supplies Expense =5500-1750 =

$                    3,750

Store Supplies

$                    3,750

(Being store supplies consumsed)

b.

Insurance Expense

$                    1,600

Prepaid Insurance

$                    1,600

(Being prepaid insurance expired)

c.

Depreciation expense- Store Equipment

$                    1,575

Accumulated Depreciation- Store Equipment

$                    1,575

(Being depreciation expense recorded)

d.

Cost of Goods sold

$                    3,700

Merchandise Inventory (14000-10300)

$                    3,700

(Being shrinkage of inventory adjusted)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.