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
Credit
Merchandise Inventory
$ 31,450
Prepaid Insurance
12,000
Accumulated depreciation-Store equipment
$ 17,050
Store supplies
2,100
Store equipment
14,250
Accounts payable
5,000
Sales salaries expense
6,000
Sales
156,000
Sales returns and allowances
1,000
Retained earnings
34,000
Cost of goods sold
70,000
Office salaries expense
14,100
Depreciation expense-store equipment
1,600
Rent expense-selling space
6,000
Insurance expense
1,600
Advertising expense
2,000
Totals
$ 189,250
$ 189,250
Additional Information:
a. Store supplies still available at fiscal year-end amount to $1,750.
b. Expired insurance, an administrative expense, is $1,600 for the fiscal year.
c. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,400 of inventory
available at fiscal year-end.
4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31.
Note: Round your answers to 2 decimal places.
Current ratio
Acid-test ratio
Gross margin ratio
