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 Credit
Cash $22,150
Merchandise inventory 13,000
Store supplies 5,100
Prepaid insurance 2,800
Store equipment 42,800
Accumulated depreciation—Store equipment $19,250
Accounts payable 17,000
Common stock 4,000
Retained earnings 25,000
Dividends 2,100
Sales 115,900
Sales discounts 2,100
Sales returns and allowances 2,000
Cost of goods sold 38,000
Depreciation expense—Store equipment 0
Sales salaries expense 12,900
Office salaries expense 12,900
Insurance expense 0
Rent expense—Selling space 8,000
Rent expense—Office space 8,000
Store supplies expense 0
Advertising expense 9,300
Totals $181,150 $181,150

Additional Information:
a. Store supplies still available at fiscal year-end amount to $2,550.
b. Expired insurance, an administrative expense, for the fiscal year is $1,720.
c. Depreciation expense on store equipment, a selling expense, is $6,500 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,720 of inventory is still available at fiscal year-end.

Required:
a. Compute the current ratios as of January 31, 2017.
b. Prepare a multiple-step income statement for the year ended January 31.
c. Prepare a single-step income statement for the year ended January 31.

a. Store supplies still available at fiscal year-end amount to $2,550.

Dr Supplies expense 2,550

    Cr Supplies 2,550

b. Expired insurance, an administrative expense, for the fiscal year is $1,720.

Dr Insurance expense 1,720

    Cr Prepaid insurance 1,720

c. Depreciation expense on store equipment, a selling expense, is $6,500 for the fiscal year.

Dr Depreciation expense 6,500

    Cr Accumulated depreciation, equipment 6,500

d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,720 of inventory is still available at fiscal year-end.

Dr Cost of goods sold 2,280

    Cr Merchandise inventory 2,280

Cash $22,150

Merchandise inventory 10,720

Store supplies 2,550

Prepaid insurance 1,080

Store equipment 42,800

Accumulated depreciation—Store equipment $25,750

Accounts payable 17,000

Common stock 4,000

Retained earnings 25,000

Dividends 2,100

Sales 115,900

Sales discounts 2,100

Sales returns and allowances 2,000

Cost of goods sold 40,280

Depreciation expense—Store equipment 6,500

Sales salaries expense 12,900

Office salaries expense 12,900

Insurance expense 1,720

Rent expense—Selling space 8,000

Rent expense—Office space 8,000

Store supplies expense 2,550

Advertising expense 9,300

Totals $187,425 $187,425

a) current ratio = current assets / current liabilities = $36,050 / $17,000 = 2.12

c)  Nelson company

Income Statement

For the month ended January 31, 202x

Revenues:

Net sales                                                               $111,800

Expenses:

Cost of goods sold $40,280 Depreciation expense - equipment $6,500Sales salaries expense $12,900 Office salaries expense $12,900 Insurance expense $1,720 Rent expense - Selling space $8,000 Rent expense - Office space $8,000 Store supplies expense $2,550 Advertising expense $9,300                             ($102,150)

Operating income                                                           $9,650

b)  Nelson company

Income Statement

For the month ended January 31, 202x

Sales:

Total sales $115,900 Sales discounts ($2,100 )Sales returns and allowances ($2,000 )                   $111,800

Cost of goods sold                                                           ($40,280)

Gross profit                                                                         $71,520

Selling expenses:

Depreciation expense - equipment $6,500Sales salaries expense $12,900 Rent expense - Selling space $8,000 Store supplies expense $2,550 Advertising expense $9,300                                    ($39,250)

S&A expenses:

Office salaries expense $12,900 Insurance expense $1,720 Rent expense - Office space $8,000                       ($22,620)

Operating income                                                                 $9,650

What’s the question exactly? i’d love to ! : )

Alot of credit card rewards