NELSON COMPANY Unadjusted trial balance 01/31/17 Debit Credit
Cash $6,100.00
Merchandise inventory $14,500.00
Store supplies $5,200.00
Prepaid insurance $2,600.00
Store equipment $42,600.00
Accumulated depreciation-Store equipment $18,300.00
Accounts payable $13,000.00
J. Nelson, Capital $19,000.00
J. Nelson, Withdrawals $2,100.00
Sales $116,250.00
Sales discounts $1,950.00
Sales returns and allowances $2,100.00
Cost of goods sold $38,000.00
Depreciation expense- store equipment $0.00
Salaries expense $26,400.00
Insurance expense $0.00
Rent expense $16,000.00
Store supplies expense $0.00
Advertising expense $9,000.00
Totals $166,550.00 $166,550.00
Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system.
Additional Information:
a. Store supplies still available at the fiscal year-end amount to $2,800
b. Expired insurance, an administrative expense, for the fiscal year is $1,700
c. Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,000 of inventory is still available at fiscal year-end
Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2017. (Round your answers to 2 decimal places.)