The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.

The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.
Cash
NELSON COMPANY
Unadjusted Trial Balance
January 31, 2013
Merchandise inventor/
Store supplies
Prepaid insurance
Store equipment
Accumulated depreciation- Store equipment
Accounts payable
J. Nelson, Capital
J. Nelson, Withdrawals
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
Totals
Debit Credit
$ 22,600
14,000
5,900
2,500
43,000
2,250
1,900
2,100
38,000
0
26,500
0
16,000
0
9,700
$ 16,800
15,000
37,000
115,650
$184,450 $184,450
Rent expense and salaries expense are equally divided between selling activities and the general and
administrative activities. Nelson Company uses a perpetual inventory system.
a. Store supplies still available at fiscal year-end amount to $2,950.
b. Expired insurance, an administrative expense, for the fiscal year is S 1,650.
c. Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year.
d. To estimate shrinkage, a physical count of ending1 merchandise inventory is taken. It shows $10,200
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 2013.

3. Prepare a single-step income statement for fiscal year 2013.

4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2013. (Round
your answers to 2 decimal places.)