Compute the following ratios as of january 31, 2016

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Reference no: EM133378876

Case Study: The fiscal year-end unadjusted trial balance for Nelson Company is found on the trial balance tab. Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. Nelson Company uses a perpetual inventory system. Descriptions of items that require adjusting entries on January 31, 2016, follow.

a.Store supplies still available at fiscal year-end amount to $1,950.
b.Expired insurance, an administrative expense, for the fiscal year is $1,480.
c.Depreciation expense on store equipment, a selling expense, is $6,300 for the fiscal year.
d.To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $9,870 of inventory is still available at fiscal year-end.

Questions:

Q1. For transactions 1-4 prepare the required adjusting journal entries. For transactions 5-8, prepare the required closing entries. This is the complete question. For 4 enteries above, they are asking to make 4 Adjusting and 4 Closing Enteries.

Q2,Multiple Step IS- Begin by selecting "Adjusted" from the drop-down below. Then, use the adjusted trial balance to prepare a multiple-step income statement. Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. For operating expenses, you must enter both the account title and the dollar amount.

Q3, Single Step IS : A single-step income statement yields the same net income, but does not show the same level of detail/subtotals as the multiple-step income statement. Use the information from the multiple-step income statement to complete the single-step income statement below.

Q4. Make a classified balance sheet as of January 31, 2015.

Q5. Compute the following ratios as of January 31, 2016. Round each ratio to 2 decimal places: Current Ratio, Acid-test ratio, Gross Margin Ratio.

Reference no: EM133378876

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